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Report: Fiber-Deep Networks Could Reach Nearly 50% of U.S. Homes by 2010
[January 24, 2005]

Report: Fiber-Deep Networks Could Reach Nearly 50% of U.S. Homes by 2010


WASHINGTON --(Business Wire)-- Jan. 24, 2005 -- Fiber-deep communications networks could reach nearly half of all U.S. homes by 2010, according to the latest BroadbandAction report by Pike & Fischer's Communications Media Analysis Group (The CMA Group). Entitled Extending Fiber Closer the Home: An Analysis of Telco Fiber Deployment Strategies, the report provides analyses of the efforts by top phone companies to rebuild their networks with fiber technology, a broadband upgrade aimed at giving phone companies greater capabilities to offer faster Internet access and deliver multichannel video services.



The report reviews a range of "fiber-deep" network upgrades planned by the major phone companies including Verizon, BellSouth and SBC. While fiber-to-the-premises (FTTP) or fiber-to-the-home (FTTH) is viewed as the ultimate communications platform, other fiber-deep architectures, including fiber-to-the-curb or fiber-to-the-node, could dominate the fiber build-outs.

Among the reports other conclusions:


-- Verizon holds the most aggressive plans to build fiber-based networks, although given the relatively higher costs involved in Verizon's FTTP agenda, it seems unlikely that the company will extend the network to more than half of its service territory homes over the next five years.

-- BellSouth, which has already deployed FTTC to roughly one million homes, has historically been the most aggressive telco in pursuing fiber-deep technologies.

-- While SBC plans to deploy FTTP in new developments, its broadband upgrade strategy centers on FTTN architectures that employ next-generation DSL technology.

-- Cable's hybrid-fiber coax architecture is sufficient to deliver a wide range of broadband services, making it unlikely that the cable industry will move quickly to emulate the phone companies in building fiber-deep technologies.

"Phone companies currently face limited growth prospects unless they build more broadband capacity into their networks," Cynthia Brumfield, Director of the CMA Group said. "According to our analysis, the major telcos are moving quickly to deploy a range of fiber-deep technologies, signaling a new era in broadband service delivery."

The report is part of a monthly series prepared by The CMA Group for its members. A table of contents can be found at: http://www.thecma-group.com/reports2.htm. Non-members can purchase the report at a premium.

About The CMA Group

The Communications Media Analysis Group (The CMA Group) is the advisory services arm of Pike & Fischer that focuses on delivering knowledgeable and insightful analysis on the broadband, IP and new media businesses. Headed by industry veteran Cynthia Brumfield, The CMA Group provides members with one-stop access to publications, reports, audioconferences, data and expert advice on cutting-edge business and technology topics including high-speed data access, voice-over-IP, streaming media, on-demand media, home networking and competitive issues. For more information, go to www.thecma-group.com.

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