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Which Home Technology is Up 21%?

Despite the increase in adoption, 72% of consumers are still unaware of this home technology.


Jason Knott · January 19, 2010

The household penetration rate of one home technology, which is tailor made for integrators, has risen 21 percent in the past 6 months.

But despite the increase in adoption, 72 percent of consumers are still unaware of the technology.

North American homes connected with Fiber to the Home (FTTH) for TV, phone and Internet is up from 4.4 million to 5.3 million, according to RVA LLC. Three years ago, only 1 million homes had FTTH connections. The overall percentage of households in North America now connected to FTTH has risen to 4.6 percent.

This is good news for integrators since homes that have FTTH systems, like Verizon FiOS, are more likely to be purchasers of big-screen TVs, networked TVs, gaming systems, streaming video and audio download systems.

Fifteen percent of all North American households have actually had fiber “passed” in front of their residences, bringing the total number of homes “passed” with FTTH to 17.3 million, up from 15.2 million in 2008. The increase is good news since the data showed a large drop in deployment in March 2009 by companies like Verizon, Connexion and others.

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The “take rate” of households (percentage who subscribe) that have been marketed FTTH by Regional Bell Operating Companies (RBOCs) like Verizon is 53.1 percent. Verizon’s take rate has noticeably improved (from 41 percent back in March 2004) since it started marketing video services, such as Video On Demand, vs. concentrating marketing messages on Internet and phone services. The overall “take rate” among households marketed to by all FTTH deployers is 32.5 percent.

Consumers in greenfield developments now rate FTTH as the most desired amenity. Eighty-two percent of all FTTH subscribers rate it important, as do 69 percent of non-FTTH users.

Other data from the study:

  • Of the 17.3 million passed with FTTH, 94 percent of them have been marketed to directly by a FTTH deployer.
  • The broadband performance satisfaction rate among FTTH subscribers is nearly twice that of cable modem users and is nearly 7 times higher than DSL users.
  • FTTH subscribers are more satisfied than other broadband providers in consistency of speed, customer service and reliability. However, FTTH subscribers are less satisfied than other providers in terms of the installation process.
  • FTTH subscribers are more satisfied than other TV providers in picture quality, number of channels, VOD services, and HDTV overall.
  • The average bandwidth speed for FTTH is 14Mbps, much higher than cable modem (9Mbps) and DSL (2Mbps).
  • 54 percent of non-FTTH users said they would not switch to FTTH even if it was available.

The states with the highest FTTH adoption rates are North Dakota, Pennsylvania, New Jersey, Virginia and Massachusetts. The states with the lowest FTTH adoption rates are Arizona, New Hampshire, Michigan, Ohio, Illinois and Colorado.

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  About the Author

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 jason.knott@emeraldexpo.com

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  Article Topics


Fiber · Research · All Topics
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