What is the global trend in the FTTx space?
The demand for high-speed internet access and internet driven applications like HDTV, video on demand, online gaming, distance learning and the likes is increasing among consumers and to meet the growing demand, the bandwidth delivery mechanism is moving towards having optical fiber-based networks replace the old DSL architecture, which is limited due to its copper infrastructure and wireless interface.
Service providers worldwide, including those in the US, Japan, South Korea and China are already developing new network capabilities to deliver high-quality bandwidth services to the last mile under the umbrella term of FTTx. In New Zealand and Australia, in particular, the strong FTTx market has been fueled by government initiatives.
According to LightCounting Market Research, this market segment is expected to exceed $1 billion USD by 2020, driven by the adoption of next-generation FTTx technologies in developed countries and increasing deployments of FTTx in emerging economies. Large-scale investments, along with the increasing standards of living, provide opportunities for infrastructure development, and are therefore expected to lead to the high growth of the fiber optics market.
By 2020, more than half the world will have access to FTTx or cable broadband, which will make up 80% of total broadband connections.
How is India adopting those trends?
For developing countries in Asia, such as India, with their rapidly increasing data traffic, it will be critical to continue to invest in broadband infrastructure to be economically competitive. Multiple countries in Asia are launching smart nation initiatives to speed up digitalization such as Digital India, where it aims to convert 100 cities across the country into smart cities.
High speed broadband connectivity on optical fiber will be available in more than 150,000 gram panchayats, with wifi hot spots and access to digital services at low tariffs – by the end of 2017 – 2018, according to Budget 2017-2018, the Minister of Finance.
What is the market size of FTTX in India?
According to Reportlinker, various next generation technologies such as Long-Term Evolution (LTE) and Fiber to the X (FTTX), which require seamless connectivity for continuous operation, are expected to drive the optical fiber cables market in India with a CAGR of over 13% during 2016 – 2021. Data traffic has also been shown to significantly increase in recent years with a growing number of mobile and broadband subscribers in India, which leads to the expansion of optical fiber cable infrastructure in the country. Internet driven applications like HDTV, video on
demand have also seen growing demand in the country, which will further accelerate the optical fiber cable market development in India.
What is the share of FTTH?
Governments across Asia are encouraging investment in high capacity networks. They see fiber as the infrastructure of the 21st century. A recent CommScope survey revealed that 71% of respondents expect to transition the majority of their networks to FTTH by 2025. Thus, the government is encouraging investment in very high-capacity networks and to accelerate public access to Wi-Fi for the region.
What is the YoY growth trend in FTTH?
MarketsandMarkets, a global market and research consulting company, estimates the global fiber optics market to reach USD 5.00 Billion by 2021, at a CAGR of 9.8%, with the Asia-Pacific region projected to be the largest market for fiber optics from 2016 to 2021. Reasons for the growth in this region include the increase in demand for connectivity in emerging countries, growing industrialization, and the burgeoning telecom industry.
What are the major challenges for FTTH market?
Government across Asia are encouraging investment in high capacity networks. They see fiber as the infrastructure of the 21st century. In a recent global survey, 71% of respondents expect to transition the majority of their networks to FTTH by 2025. Thus, the government is encouraging investment in very high-capacity networks and accelerate public access to Wi-Fi for the region.
Spectrum is scarce and there is limited amount of frequency allocation. There is an urgent need to free up more spectrum for 3G and 4G, to name one.
For developing countries in Asia, such as India, with their rapidly increasing data traffic, it will be critical to continue to invest in broadband infrastructure to be economically competitive. Fiber optics will play a critical role in realizing the dream of Digital India. The combination of fiber and wireless technology will meet the needs for today’s and tomorrow’s expanding bandwidth demands.
Brief us about the solutions available from Commscope?
CommScope has been dedicated to serving customers in four major areas: indoor and outdoor wireless networks, data center and central offices; connected & efficient buildings; and access and backhaul networks. One year after acquisition of TE Connectivity’s BNS business, CommScope is well positioned to address bandwidth needs through a convergence of network technology, including outdoor cellular infrastructure, small cells, distributed antenna systems, fiber optic connectivity and data center infrastructure.
In the FTTH APAC Conference in New Delhi, we have showcased our latest solutions to meet the continuous growth of bandwidth needs:
The FACT Optical Distribution Frame enables faster and easier installation in a high density environment and features smart fiber management.
Security cameras and Wi-Fi hot spots are becoming increasingly critical for universities, hospitals, hotels and other buildings. However, device access to power and network connectivity can be challenging. CommScope’s Powered Fiber Cable System, a top promising innovation, simultaneously powers and communicates with small cells, Wi-Fi hotspots, HD cameras and other network access devices, eliminating the need for a local power source.
Large incumbent service providers have both wireline and wireless operations and are converging onto a single network. Addressing multiple market segments, adding revenue streams and de-risking the business case may be critical elements in network convergence. CommScope will showcase how Passive Course/Dense Wavelength Division Multiplexing (C/DWDM) enables operators to converge multiple applications onto a single network.
Outside Plant Closure Solutions, one of CommScope’s top 10 innovations during its 40 year history, has gel seals which help seal the cable entries of fiber optic closures in a very reliable and craft-insensitive way. It eliminates the use of gas torches, electrical generators or other specific tooling. It can be easily re-opened and re-used to add cables without compromising the connection.
Optical fiber continues to gain popularity as one of the best broadband mediums for future-proofing against higher and faster capacity requirements by end users. Existence of optical connectivity in multi-dwelling units (MDUs), office buildings and even single-family units (SFUs) may increase property values while fiber connectivity as part of the building structure has become an expected service for usersi. CommScope’s hardened connectivity connectors and Rapid Fiber panels simplify installation and reduce time the technician spends to connect a subscriber to the last mile in the network.
What is your marketing and sales strategy?
As one of CommScope’s core values, innovation is a significant priority for the company. We are focusing innovation on improving network latency and reducing deployment time for service providers.
With bandwidth needs of communications networks continuing to grow, it is clear we must continue to progress and innovate. The number of connected devices per person globally is expected to nearly double in five years, with the average person having more than six such devices in 20201. Data use on these devices has increased and is expected to continue to rise at exponential rates (about six times over the next five years)2. This rapid rate of growth and adoption of new devices makes network latency (response time) a far greater concern.
How great is the challenge for network operators? The number of devices connected to IP networks will be more than three times the global population by 20203. Globally, mobile data traffic will increase eightfold between 2015 and 20204. In addition, hyperscale data center builds are increasing globally as the world’s largest technology companies try to manage exponential data traffic growth.
Our innovative fiber solutions can save operators significant time and money, as field labor costs are a substantial portion of overall network deployment costs. By shifting labor from the “field to the factory,” we make deployment easier and faster. We are also working with our service provider customers on how new technologies such as 5G will be deployed so that they are ready to address the bandwidth and service needs of their customers.
With the continued densification of wireless networks expected for 5G, we have expanded our indoor small cell and outdoor metro cell solutions, while evolving our distributed antenna system (DAS) solutions. Lastly, we are part of many of the industry groups developing and testing network solutions for 5G, further demonstrating our expertise and commitment to innovation.
