SEPTEMBER 18, 2006 -- The Fiber-to-the-Home Council (FTTH) today urged the U.S. Senate to accelerate the deployment of new fiber networks and related technology by passing pending telecom reform legislation. The FTTH Council said the bill (The Advanced Telecommunications and Opportunities Reform Act, HR. 5252), which promotes competition by establishing a system of national video franchising and backs the development of municipal broadband networks, would spur billions of dollars in new economic activity, cut consumers' telecom costs, generate new jobs, boost productivity, and enhance consumers' lifestyles.
"Widespread deployment of fiber-based networks to American homes and businesses is critical to U.S. competitiveness in the 21st century," FTTH Council President Joe Savage said. "Smart public policies can speed the construction of fiber networks by removing outdated regulations that block video and broadband competition."
Speaking at a briefing for Congressional staff as part of direct outreach to senators by consumers and businesses committed to faster deployment, Savage said fiber-to-the-home is the critical next step in the information economy and could stimulate more than $25 billion in economic activity by 2010.
"Nearly every day, American innovators are finding new ways to tap the power of the Internet. But taking full advantage of these exciting new services requires increased Internet capacity that is not available with copper-based networks," Savage said. "Fiber networks are the best way to get the bandwidth we need."
"Fiber networks are good for our communities, and passing this bill means more fiber to more Americans sooner," Savage said.
Michael Render, president of RVA Market Research, who joined Savage at the briefing, said the United States is now the world's fastest-growing FTTH market, though it still runs far behind Japan in total deployment. He said more than 670,000 U.S. homes are now wired for fiber networks (as of April 1, 2006), compared to just 38,000 in April 2003, and fiber connections grew 215 percent in the United States between spring 2005 and spring 2006. Despite the surge, Render noted that only about 1 percent of U.S. homes are currently connected to fiber networks.
This room to grow creates enormous potential for long-term economic benefits. For example, Render estimated that the installation of residential fiber generates about $370 per home in additional sales of consumer electronics -- or about $169 million between spring 2005 and spring 2006. He said direct spending for the installation of FTTH totaled about $1.2 billion during the same period. By 2010, Render estimated that FTTH installations will produce $21 billion in total infrastructure investment and about $4.5 billion in additional sales of consumer electronics.
Fiber-to-the-home also facilitates the creation of in-home businesses. Render said that current FTTH subscribers report they take advantage of their fiber connections to work an additional day per month from home.
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