Those of you who experienced the fiber glut were perhaps heartened to learn of the Reuters report that Corning has more orders for optical fiber than it can handle. Interestingly, Verizon is one of the principal reasons for the shortfall. The company has ordered 20% more fiber than Corning has expected -- despite shifting its FiOS deployments from passing homes to customer acquisition.
Apparently Verizon is doing even better with FiOS than observers (or, at least, Corning) had predicted. In its last quarterly earnings statement on April 21, 2011, which covered 1Q11 performance, Verizon said it added 207,000 net new FiOS Internet connections and 192,000 net new FiOS TV connections in the first three months of the year. That equates to totals of 4.3 million FiOS Internet and 3.7 million FiOS TV connections by the end of the quarter. Verizon expects to report second quarter performance on July 22, 2011.
Meanwhile, Reuters reports that Corning CFO Jim Flaws says the company also is seeing increased activity in Japan and Australia. Earthquake recovery and the National Broadband Network (NBN), respectively, are clear catalysts in these instances.
Corning says that it plans to expand its manufacturing capacity to meet the surge in demand. But Flaws's statement may also mean good news for OFS, which also has supplied Verizon with fiber for MDU applications.
It also means good news for the optical communications industry in general and the FTTH segment in particular. Just because the initial rollout of FiOS may be over doesn't mean the optical opportunity ended with it.