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Fiber Fascinates, but Telcos Will Compete Using Copper
Yankee Group, The, Sep 2004, Pages: 12
Broadband deployment is the number-one concern for telecommunication services providers. Broadband will allow telcos to deliver value-added services, which will account for a greater percentage of customer ARPU. However, there is a debate surfacing that questions whether DSL will ultimately be revealed as a wasted investment in the face of first-mile fiber deployment.
Fiber-to-the-home (FTTH) has several advantages, including future-proofing and superior bandwidth potential, but the ROI is murky. DSL is normally equated with ADSL, but other technologies, such as ADSL2+ and VDSL2, are gaining momentum, and when coupled with short loop lengths, double-digit megabit bandwidth can be delivered. The most likely scenario is a combination of fiber deployed deep into neighborhoods and copper used as the drop line over the last few hundred feet.
It has been long predicted a new infrastructure trend that will push electronics out to the edge of the network. This prediction has been recently supported by SBC’s announcement of the most significant broadband infrastructure deployment plan in 5 years. We urge service providers to capture DSL market share quickly and to view DSL as an important strategic technology that has not outlived its usefulness, and one that can position telcos for future success
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