PALO ALTO, Calif. --(Business Wire)-- May 10, 2005 -- Carriers in the North American telecommunication service markets have been revising their strategies to hold off competition from multiple service operators (MSOs) that offer exclusive telecom voice services such as voice over Internet protocol (VoIP).

Carriers are now trying to figure out appropriate ways and time to invest significantly in upgrades of their local loops with fiber optics to enable them to make effective "triple-play" offerings.

New analysis from Frost & Sullivan (www.telecommunication.frost.com), North American Telecommunications Services: "Fiber in the Local Loop -- Laying the Groundwork for the Triple Play," examines the challenges that telecom carriers face in developing strategies for deploying fiber or alternative strategies in their local loop networks.

If you are interested in a virtual brochure, which provides manufacturers and other industry participants an overview of the latest analysis of the North American Telecommunications Services: "Fiber in the Local Loop" -- then send an e-mail to Mireya Castilla -- Corporate Communications at mireya.castilla@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail. Upon receipt of the above information, an overview will be sent to you via e-mail.

Telecom companies will have to settle on whether they will provide voice, the Internet, and video "triple-play" or not, and those that make the right decisions are likely to retain the most lucrative customers. Technological advances have made it possible to provide all three components at greater speeds and better capabilities -- all over a converged platform.

MSOs expect to stay on course with their network upgrades and move to data over cable service interface specification (DOCSIS) 2.0 standards for greater upstream bandwidth and symmetrical capacity. They have a head start over telecom companies in offering video content and services.

"Alternative technologies such as broadband over power lines (BPL), wireless solutions like WiMax, and satellite broadband, could also substitute for telecom carriers' fiber-to-the-x (FTTx)," says Frost & Sullivan Research Analyst Reggie Helton. "Although not all of these can threaten the triple-play offering, they can certainly capture some broadband services, and thereby, customers."

Telecom companies that also offer mobile services are most likely to fend off the challenge from MSOs and other providers of bundled services. They will not only be able to offer triple-play, but also quad-play (triple-play as well as mobile wireless).

This offering facilitates marketing a unique solution with a single bill from any one provider and has larger implications for future integrated broadband applications.

Broadband services will require larger bandwidth, and consequently, significant investment in infrastructure. Telecom companies can take heart from a positive Federal Communications Commission (FCC) ruling that has exempted incumbent local exchange carriers (ILECs) from unbundling their local fiber network elements.

This decision has given them an incentive to increase capital spending on fiber-to-the-home (FTTH). The FCC also later extended this verdict to fiber-to-the-curb (FTTC) architectures that are within 500 feet of the customer premise.

This decision has given carriers further motivation to enhance their investment in FTTx, particularly those with significant FTTC deployments. These encouraging trends expect to help carriers cater to greater bandwidth demand for sophisticated applications.

"The symmetrical bandwidth requirements of current and future interactive and peer-to-peer applications could create a need for greater upstream and downstream bandwidths provided by FTTx technology," notes Helton.

However, this customer demand is dependent on the requirement for high definition TV (HDTV) and various new interactive applications.

Similar synergies come into play when certain peer-to-peer file sharing platforms or other interactive applications that need more symmetrical bandwidth are to become popular. Instead of a single incremental HDTV set consuming the entire digital subscriber line (xDSL) capacity, a few new interactive applications could overcome the practical limit of the fiber-to-the-node (FTTN) solution.

North American Telecommunications Services: "Fiber in the Local Loop," part of the Consumer Services subscription, examines the challenges that telecom carriers face in developing strategies for deploying fiber or alternative technologies in their local loop networks. It also discusses the driving and restraining factors for revenue generation and gives recommendations on how to proceed in this market. The research enables companies to align their positioning strategies to benefit from the changing markets and obtain maximum return on investment. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com/.

North American Telecommunications Services: "Fiber in the Local Loop -- Laying the Groundwork for the Triple Play"

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Keywords in this release: telecommunication service, North America, multiple service operator, MSOs, voice over Internet protocol, VoIP, triple-play, DOCSIS 2.0, fiber-to-the-x, FTTx, broadband over power lines, BPL, WiMax, quad-play, Federal Communications Commission, FCC, incumbent local exchange carriers, ILECs, fiber-to-the-home, FTTH, fiber-to-the-curb, FTTC, high definition TV, HDTV, x digital subscriber line, xDSL, fiber-to-the-node, FTTN, research, information, market, trends, technology, service, forecast

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