More Challenges for FTTH Networks

High Prices, entrenched incumbents, struggling worldwide economy. Can there be more challenges to building and expanding fiber-to-the-home (FTTH) networks?

The Yankee Group, in a new global report, believes that regulatory uncertainty, in the U.S. and abroad, can be standing in the way of these fiber-rich networks. In the lack of uniform regulation, sometimes within countries themselves, that could be a logical conclusion.

Starting from scratch with an FTTH network in the U.S. would be a titanic task, with a badly battered economy. Expanding current fiber networks is no walk in the park either, with many operators cutting capital spending this year – and fielding far fewer employees worldwide.

When times are tough, as was the case around the dot-bomb, companies typically spend the lion’s share of their budgets on maintaining the status quo, with a firm focus on cutting expenses.

It’s perhaps more logical to first fixate on squeezing more out of existing assets and resources – whether its revenue or bit rates.

Favorable regulation can certainly open doors and foster opportunities. But it may be too much to ask in the toughest of times to expect edicts that drive fiber networks to be too high on leaders’ to-do lists.

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