Fiber to the Home Connections Continue to Accelerate

New study shows smaller telephone companies helping to lead the way to next-generation broadband connectivity

April 2, 2007 - Washington, DC – The number of U.S. homes receiving video, internet and voice services over direct fiber optic connections has doubled over the past year, continuing a recent trend of robust growth in deployment of this high bandwidth technology, according to a new study sponsored by the Fiber-to-the-Home (FTTH) Council and the Telecommunications Industry Association (TIA).
According to the study, released during the Digital City Expo in Reston, Virginia, 1.34 million homes are now connected to the internet via end-to-end fiber, with FTTH now passing 7.9 million homes. This compares to 671,000 connections and 4.1 million homes passed as of March 2006.

Further, the study shows that fiber-to-the-home is being installed by a wide range of incumbent and competitive providers, and not just large telephone companies. Accounting for more than 430,000 FTTH subscribers are small rural telephone companies, medium-sized telephone service providers and cable companies, private facilities-based competitive local exchange carriers and public entities such as municipalities and public utilities.
“While Verizon is by far the largest single provider of fiber-to-the-home services, our figures show that there are more than 340 companies serving customers with these ultra high bandwidth services,” said Mike Render of RVA Market Research (www.rvallc.com), author of the study. “In fact, small rural telephone companies are actually leading the way in terms of penetration – with three percent of their combined customer base now connected via fiber-to-the-home.”

Render noted that while the U.S. continues to lag behind Japan in the total number of homes connected to FTTH, it had taken a commanding lead in terms of the growth rate in direct fiber optic connections.

“Clearly, America’s need for speed is driving sustainable, accelerated growth in the deployment of high bandwidth fiber to homes across the country,” said Joe Savage, President of the FTTH Council. “We expect this rate of growth will continue as an increasing number of Americans discover the ease with which video entertainment, gaming, and data applications are delivered through fiber-enabled connections.”

“Demand for broadband and high-speed services is fueling growth in the U.S. and global telecommunications markets,” TIA President Grant Seiffert said in reaction to the study. “In fact, according to TIA’s 2007 Telecommunications Market Review and Forecast, the U.S. telecommunications market grew 9.3% in 2006 – its fastest rate since 2000 – and the worldwide telecommunications market grew 11.2 percent. This study reinforces a major trend in our industry, namely investment in new fiber, new IP technology and new wireless infrastructure to provide state-of-the-art voice, video and data services.”

Both organizations have urged policymakers to reduce barriers to next-generation broadband deployment, with the FTTH Council recently calling on the U.S. government to adopt a strategy for universal access to broadband connections at transmission speeds of 100 megabits per second.

Further information on the study, including graphs and charts, can be found here.
About the Fiber-to-the-Home Council – Now in its sixth year, the Fiber-to-the-Home Council is a non-profit organization established to help its members plan, market, implement and manage FTTH solutions. Council membership includes municipalities, utilities, developers, and traditional and non-traditional service providers, creating a cohesive group to share knowledge and build industry consensus on key issues surrounding fiber to the home. Communities and organizations interested in exploring FTTH options may find information on the FTTH Council web site at www.ftthcouncil.org.

About TIA -- The Telecommunications Industry Association (TIA) is the leading trade association for the information, communications and entertainment technology industry. TIA serves industry suppliers to global markets through its leadership in standards development, domestic and international policy advocacy, and facilitating member business opportunities. TIA represents the communications sector of the Electronic Industries Alliance (EIA). For more information, go to www.tiaonline.org.