For the manufacturer, there are several benefits that justify the use of fibers as a data communication medium: reduction of operational and maintenance costs of the networks, in addition to high access speed (100Mbps-1Gbps), security and lower energy consumption.

“PON networks are the secret to the business,” assures Nelson Saito, manager of the FTTx Technical Department at Furukawa. “These optical networks are point-to-multipoint, meaning that only one fiber is used to enable data or service sharing among various users without the use of any active elements between the equipment in the last mile (CPE – Customer Premises Equipment) and the access provider's equipment (OLT – Optical Line Terminal). This substantially reduces the effective cost of operations,” explains the specialist.

Ultra-broadband for cities

Among the applications of the Furukawa PON LAN solution, the manufacturer is heavily investing in digital city projects. “Furukawa expects municipal administrations to adopt its ultra-broadband technology with access speeds of 100 Mbps or higher to interconnect networks for Public Safety, Education, and Health, among others, generating not only transparency but also a significant improvement in the services provided to the population,” says Saito.
The executive notes that Furukawa recently won a competition to develop the optical network for a digital city project to interconnect the various computer networks within the municipality's administrative structure. “This represents a significant step forward from what has been proposed in existing digital city projects in the region, where access has always relied on wireless technology, resulting in a short lifespan, limited bandwidth, and constant signal drops due to rain and wind, requiring substantial investment in technical equipment for maintenance. The technology of the future will be PON LAN, as it is sustainable. Its long lifespan guarantees investments for the next 20 years.
Saito says that, because it is such an innovative technology, there is still no data in the public sector to demonstrate the economic viability of the projects. “But we can look to industry, which proves the efficiency and effectiveness of fiber as a medium,” Saito states, citing the American company Verizon, which achieved a US$5 billion reduction in operating costs, and the Japanese company NTT, which recorded savings of US$7 billion per year, both investing in the technology, in addition to projects by national operators that are beginning to be publicized.

For Furukawa, the telecommunications market is comprised of various telecoms worldwide and in the region that are already investing heavily in FTTH. “Today, it's not just those with this strategy, or those waiting for a regulatory position, who are investing in purely fiber networks. The technology is there, clearly proven, and there are no more technical or financial excuses preventing fiber from reaching people's doorsteps and entering their homes, benefiting both operators and the population,” says the Furukawa manager.
In addition to the large telecommunications operators, high-level construction companies and ISPs are also investing in the technology. “Furukawa, for example, already has 15 clients of this type using FTTH/B technologies to share access among two, five, and ten thousand subscribers,” explains Nelson Saito.

World Stage

Globally, the FTTH/B market had 50 million subscribers as of last year, with the Asia-Pacific (APAC) region remaining the largest. Each country in the region is at a different stage of development, registering over 38 million subscribers. Europe, including Russia, has 3.5 million subscribers, while the Americas, primarily concentrated in the US, has 7.5 million. APAC is projected to reach 100 million FTTH subscribers in 2012, with 25% of these being residential and 75% commercial.

“The main market for this technology is undoubtedly Japan, which pioneered the implementation of FTTH networks and is home to the Furukawa Group. Currently, there are approximately 17 million FTTH subscribers there. Japan is the world's largest market with internet services at 100 Mbps at an average cost of US$35 per month, and many operators already provide 1 Gbps access services,” reports Saito.

South Korea also stands out, and of course, China is currently the largest potential market, with major telecoms already deploying FTTH/FTTB networks. “In China, there are already six million subscribers, which has even been one of the reasons for the lack of distribution of equipment and electronic components related to this technology worldwide,” he notes.

In Australia, with investments of US$38.7 billion, the National Ultra Broadband Plan anticipates that 90% of the country will be connected by fiber by 2017, providing 100 Mbps access for the population. In the US, the goal is also to reach 100 million subscribers with 100 Mbps access by 2020, and to achieve this, the US has a government incentive program—a seven billion dollar fund to stimulate projects, most of which involve the use of FTTH technology.

“In Europe, we have an interesting situation, as major powers like Germany and the UK are not investing in large-scale FTTH projects. British Telecom only began deploying its network this year, and the big question revolves around the regulatory model (umbundling), which is delaying the implementation of FTTH networks in the region,” says Saito. “But we have some notable exceptions in the European market. Portugal, for example, has its national 100 Mbps network incentivized by the government, and, incredibly, the highest FTTH penetration rate in Europe is in Lithuania, at 17%,” concludes the manager of Furukawa's FTTx Department.