Saturday, June 30, 2007

Europe to have 8 Million Fiber Homes by 2012

The European Fiber to the Home Council set a goal of having 8 million fiber connected homes in Europe by the end of 2012. There are 820 thousand fiber connected homes in Europe today. The council expects that 6.0 to 6.5 million of these fiber connections will come from build outs by utility companies and municipalities. The remainder will be provided by carriers.

These fiber homes will be a strong market for IPTV services. I expect that these fiber deployments should achieve the 80 percent video penetration that SureWest has in the Sacramento area with its FTTH deployment.

It is interesting to see to what degree these fiber deployments are supported by utility companies and municipalities in Europe such as Amsterdam and Vienna. Paris and Pau are two cities in France deploying fiber. France Telecom and Free in France are two carriers that have started investing in FTTH.

2 comments:

Unknown said...

Hi Bob,

8 mil homes in more than 4 years sound kinda low. do u know how much 8 mil is in terms of %?
when compared to forecasts for the US and current situation in Japan and Korea this forecast is unimpressive, don't you think?

Bob Larribeau said...

Depending how you count, this is between 5 and 10 percent of the total population. No, I do not think this is a large number, especially compared to Japan, Korea, or Taiwan, for instance.

There was one interesting things from this post. The first was how little of the fiber deployment was expected to come from the Telcos. Almost all of it will come from utility companies or municipalities.

I had an interesting discussion with Nokia Siemens at NxtComm last week. They said that they the wiring distance are short enough that they expect that VDSL-2 will provide 100 Mbps to a significant number of subscribers. This means that VDSL-2 will provide the kind of performance that Verizon and others are using FTTH to get.

The other important fact about Europe is that DOCSIS 3.0 and 100 Mbps cable modem services will not be anywhere neas as strong a factor in Europe as they will be in the U.S.