Telco’s Face Increasing Financial Dilemma in Choosing FTTP Over Existing DSL Technologies to Meet Broadband Demand, Says ABI

  Telco’s Face Increasing Financial Dilemma in Choosing FTTP Over Existing DSL
  Technologies to Meet Broadband Demand, Says ABI Research

Business Wire

LONDON -- July 02, 2012

Copper networks continue to be a cash cow for telephone companies (Telco’s),
delivering broadband over DSL to more than 367 million subscribers worldwide
in 2011. Fiber to the Home (FTTH) technologies bring ten times the bandwidth
compared to advanced DSL technologies. However, upgrades to advanced forms of
DSL require a fraction of the investment of upgrades to FTTH. “Financial
instability in the advanced economies of Western Europe and lack of innovative
internet video services force Telco’s to look into the cost to value
proposition delivered by making large scale investments into FTTH,” according
to Adarsh Krishnan, senior analyst of TV & Video at ABI Research.

“Strong government initiatives to develop fiber infrastructure have in most
cases been a necessary prerequisite to fund FTTH or fiber to the building
(FTTB) deployments. These incentives have been strongest in Western Europe and
Asia-Pacific.”, according to Sam Rosen, practice director of TV & Video at ABI
Research. Worldwide, FTTH/B service revenues reached $29.6 billion in 2011.

Innovative internet video services including IPTV and OTT (at HD resolutions)
give Telco’s the necessary competitive edge for triple play (telephone,
internet and TV) and quad play (telephone, internet, TV and mobile phone)
services that have been lacking against competing cable operators. Even in the
absence of fiber upgrades Telco’s can compete with triple-play services; for
example, AT&T U-verse delivers IPTV over ADSL2 at 15 Mbps bandwidth. Global
revenues from DSL broadband services have seen incremental growth in service
revenue to reach $106 billion with a CAGR growth of 14% in the last 5 years up
until 2011. Asia-Pacific continued to be a critical growth region for DSL
broadband with China playing a dominant role accounting for 33% of the
worldwide subscribers in 2011.

These findings are part of ABI Research’s Broadband CPE
( ) service, which
provides an outlook on Telco’s network deployments, consumer adoption and
service revenues for DSL and fiber broadband services. An analysis of key
trends, current/emerging technologies, as well as drivers and inhibitors
influencing consumer adoption of Telco broadband services is also presented.

ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
thousands of decision makers through 40+ research and advisory services. Est.
1990. For more information visit, or call +1.516.624.2500.


ABI Research
Christine Gallen, +44.203.326.0142
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