Study claims billions will be spent on fibre broadband by 2017

Monday, April 30th 2012
Analysys Mason has predicted that spending on fibre optic broadband rollouts will stand at .5 billion between 2012 and 2017.
Study claims billions will be spent on fibre broadband by 2017
Network operators are set to spend more than billion (£31 billion) on fibre optic broadband rollouts over the next five years, according to Analysys Mason.

A new report from the telecoms, media and technology analyst firm predicted that investment in deployments will hit .5 billion between 2012 and 2017, with western Europe expected to be the region where most is spent on the infrastructure.

During the study period, an estimated .9 billion will be invested in the rollout of super-fast broadband in western Europe, the company claimed.

About 82 per cent of the global expenditure will go toward fibre-to-the-home technology, rather than the other fibre-based broadband solution, very-high-bitrate digital subscriber lines (VDSL).

However, Analysys Mason stated that countries where the major operators concentrate on the deployment of fibre-to-the-cabinet (FTTC) and VDSL will typically have much higher availability of fibre optic broadband in five years' time.

In the UK, BT is largely concentrating on delivering FTTC technology, with the company's fibre optic broadband services currently available to more than seven million homes and businesses.

By the end of 2014, the telecoms giant is aiming to roll fibre broadband out to two-thirds of properties.

Consequently, the report highlighted the risks attached to focusing solely on FTTH solutions, given that 4G and cable-based technologies can be deployed more quickly.

Vectoring and line bonding were cited as services that will help DSL broadband operators keep pace with their cable company rivals over the coming years.

Rupert Wood, author of the report and lead analyst for Analysys Mason's fixed networks research programme, said: "Given the as-yet untapped potential of copper over short distances, we wonder whether it is really sensible at this stage to take fibre right to people's homes.

"Sticking rigidly to FTTH runs the risk of delivering next-generation access to a largely urban or well-to-do elite, while delaying delivery to other users and potentially losing customers."

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