Over the next 5 years, worldwide spending on fibre-optic systems used for broadband access will total US$77 billion, increasing from US$8 billion this year to US$21 billion by 2010, say KMI Research analysts in the firm’s new report, “Worldwide Markets for Fibreoptics in Broadband Access Networks.” KMI includes transmission equipment, fibre-optic cable, and passive apparatus, such as cabinets, closures, and splitters, in its definition of fibre-optic systems.
According to lead analyst Richard Mack, all-optical architectures (in which fibre is extended all the way to the customer’s building) will serve an increasing percentage of the world’s broadband subscribers throughout the forecast period. In 2005, only 7% of the world’s broadband subscribers received service via a fibre-to-the-home/building (FTTH/B) architecture, but by 2010, this percentage will have increased to 27%.
Two factors are contributing to the overall increase in demand for fibre-optic systems, says Mack. First, service providers already offering copper-based ADSL will extend fibre further into their loop plant to support higher speeds. Second, service providers offering broadband access for the first time are using fibre, either to enter an established market as a new competitor or to benefit from its cost advantages for bandwidth, distance, and density requirements.
With Korea, Australia, and several emerging markets, the Asia-Pacific region accounted for 70% of the world market. Although Europe and other regions will experience faster growth in the next 5 years, the Asia-Pacific region will remain 50% of the worldwide market for fibre optics in FTTX networks through 2010.
KMI’s new report covers both fibre-fed DSL system architectures, including fibre-to-the-node/curb (FTTN/C), as well as FTTB and FTTP systems. For more information, visit www.kmiresearch.com.