Has Fiber-to-the-Home Peaked?
New data suggests slowing market for Fiber-to-the-Home (FTTH) in terms of deployment and adoption. Verizon reportedly waiting for higher take-rates before financing more deployment.
Has Fiber-to-the-Home (FTTH) lost is glow? Perhaps.
According to new data from RVA released at the 2012 Broadband Communities Summit, the pace of FTTH adoption has slowed dramatically. Only about 500,000 households added FTTH services in the past six months ending in March 2012. The previous six months before that just 405,000 homes were connected.
The yearly number of 905,000 is the lowest 12-month total since before 2007. The most recent data equates to a 35 percent take-rate among homes that have fiber available and 41.7 percent take-rate among those that have been marketed to.
FTTH, which was initially tied to new home construction and then moved into the existing home market via Verizon’s FiOS efforts, is seen as a guidepost for HDTV adoption and home theater installations. Customers who spend money for FTTH are more likely to stream video, watch HDTV and require robust home networks. FiOS currently has 6 million customers. In the case of FiOS, fiber is brought from curbside to the home and then signals are carried on a home’s existing coax network using Multimedia over Coax Alliance (MoCA) technology.
According to RVA:
- 22.6 million homes have been passed with fiber
- 19.2 million of those homes have been marketed to.
- 8 million of those homes are connected to fiber.
More recently, FTTH is being propped up by government stimulus money. According to Michael Render of RVA, speaking at the Broadband Communities Summit, Wall St. wants to see more single-family homes sign up for FTTH before investing money to open up new communities. At one point, Verizon alone was passing fiber in front of 3 million homes every year.
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Jason Knott is Chief Content Officer for Emerald Expositions Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at email@example.com
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