Why FTTH can save your telecom cost

“In determining the optimum, long-term, cost-effective solution we had to consider the differing needs of the market, the Government, regulation and, of course, our client.”

FTTH: saving your money

  “There is a burgeoning demand for bandwidth by private individuals to access increasingly available high bandwidth content, and commercial enterprises to fully exploit ICT to ensure commercial success.” This is the current market situations.

High bandwidth speed

Without doing a deep analysis of the technical differences between FTTH and HFC, is possible to understand, according to Paul Budde, that HFC networks are able to delivery 100 Mbps, at least theoretical, but in reality they are delivering speeds, mostly, between, “up to” 20 and 50 Mbps (Budde, 2013), while FTTH networks delivery in average, actually, 50 Mbps guaranteed, and can easily reach values of 1 Gbps. (Kelly, 2010)

Market demanding high quality (at high-speeds)

Why FTTH can save telecom cost

Why FTTH can save telecom cost

  In the market, it is commonly considered likely fibre-based broadband technology roadmaps up to 2025.

The shared nature of HFC networks and the extra cost involved while providing consistent higher speed services, turn HFC increasingly less competitive that FTTH networks. Older HFC networks are facing serious upgrading problems and HFC operators are experiencing problems for delivering high-speeds at high quality level to mass markets. Although, in many situations is possible to upgrade the network, HFC operators are aware that they will need to replace their networks in a near future. (Budde, 2013)

Advantages of asymmetric network solution

  There are two main technology families that can be used to deliver high-bandwidth services over fibre:

  • Passive Optical Network (PON)
  • Point-to-Point Ethernet (PTPE)
Being an asymmetrical network, with uplinks values around 10% of downlinks bandwidth rates, HFC needs to drastically increase their rates to be able to deal with the current needs off upstream data, that are nowadays huge demands, due to information sharing such as YouTube or Facebook. (Chan, 2010) FTTH can easily deploy 50% of upstream rate, with possibilities to equalize the downstream values. 

Opex cost is heavily reduced

While networks topologies are different between all the technologies, and all of them have some advantages over the others, FTTH have a main advantage, as it Opex cost is heavily reduced when comparing to cable technologies, for instance, according to Alan marks, FTTH, using GPON (Gigabit Passive Optical Network) uses an OSP (OutSide Plant) architecture completely passive, i.e., without any powering requirements, an annual Opex reduction of 3 million USD for 1 million homes, the value needed by a an HFC operator to power its network OSP. (Marks, 2007)

Passive network, lower maintenance cost

Not only power requirements and cost affect the Opex disadvantages of cable technologies networks when compared with fibre ones, also, being a passive network, FTTH/GPON networks have lower maintenance cost, while lacking active components and more resilient nature of fibre. These advantages result in fewer interventions for maintenance of the network, thus, a much more efficient network, reflecting in its lower Opex costs. (Mahmoudi, 2006)

  What is also important is that the physical infrastructure is flexible enough to support future technologies, for example, the potential future deployment of the next generation of PON equipment, such as WDM PON AWGs (splitters).

Prices of fibre cable and active equipment have become cheaper than copper ones.

As understand already, Opex cost give an huge advantage on FTTH networks over cable ones, but also, as the best practices and demand grows, the Capex for FTTH is continuously falling, with newcomers preferring to invest in new fibre networks, instead of coaxial ones. FTTH council states that the prices of fibre cable and active equipment have become cheaper than copper ones. (Krauze, 2012)

Other reasons for saving money via FTTH

“There will soon be a day when copper simply cant keep up anymore.”, also, it can provide better customer experience. Although increasing your Capex for the last mille with a full fibre network, you will decrease you Opex when compared with the use of copper technologies for the last mile.

  Bandwidth usage grows at an incredible rate. There will soon be a day when copper simply cant keep up anymore.

We need to leverage existing LEC fiber and pole their ownership while looking to new technologies for last mile. Deploying fiber does make a good business case in many rural circumstances. reducing core network cost free up capital for last mile construction. The challenge is how to effectively deploy GPON/EPON symmetrically with emerging broadband over existing copper technologies.

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Why FTTH can save telecom cost

FTTH: saving money

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