KMI reports that FTTH costs are approaching that of copper. I thought this might be the best place to ask if this conclusion is a reasonable one. It was sort hard to miss the absence of the comparable copper costs in the article. Can anyone on the thread offer any enlightenment? TIA - peggylynn
FIBER-TO-THE-HOME APPROACHES COST PARITY WITH COPPER
Newport, RI, USA (October 26, 2000) - The cost of deploying fiber-to-the home is approaching that of deploying copper, said Verizon's Rick Hofman and Marconi's John Gibbs at KMI's 23rd Annual Conference of Fiberoptics Markets in Newport.
Rick Hoffman, Director of Transmission and Future Technology at Verizon Communications, said that key components enabling Verizon to deploy fiber-to-the-home include aerial fusion splicing, self-supporting fiber cable and fiber drops, lower fiber cable prices, and Bell Atlantic's PON (passive optical network) architecture of one fiber.
John Gibbs, Director of Access Systems Product Marketing for Marconi, presented a cost comparison for a three-year buildout of a new residential housing development. He projected fiber-to-the-home costs to be $1,400 per home in year one, and $1,200 per home in years two and three.
The conference, held October 16-18, brought together leading operators and industry giants. Represented among the 332 attendees were 210 companies from 18 countries including the U.S., Japan, Korea, Brazil, the U.K., China, and India. Twenty-six representatives from 24 companies spoke during the three-day program.
Ultra-Long-Haul Touted for Optical-Network Core
Representatives from Corvis, Qtera (Nortel), and Sycamore addressed the evolution of ultra-long-haul (ULH) optical networking. Phil Becker of Corvis reviewed the efficiencies associated with mesh topographies and the importance of implementing an all-optical network.
Niall Robinson of Qtera predicted significant capacity growth in ULH systems over the next two years. In the 2,400 -to- 4,000 kilometer system group, capacity in 2001 should reach more than 500 Gbps, moving to more than 1 Tbps in the first half of 2002, Robinson said.
KMI Forecasts a $45 Billion Market for DWDM Systems by 2005
KMI Senior Analyst Neil Dunay forecast that the Dense Wavelength Division Multiplexing (DWDM) systems market will skyrocket from $4.2 billion in 1999 to $10 billion in 2000. This reflects an 84% compound annual growth rate (CAGR) over the past four years, he said.
Forecasting continued strong growth, Dunay predicts this market will grow at a 35% CAGR from 2000 to 2005, when the market will reach a staggering $45 billion.
The Newport Conference is one of four regional events organized by KMI Corporation on the state of the worldwide fiberoptics market. The company's next regional event is the Fourth Annual Conference on Fiberoptics Markets in Latin America, March 8-9, 2001, at the Fontainebleau Hilton in Miami.
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