Understanding How Fiber-to-the-Home Broadband Functions

Consider how your Internet habits have transformed in recent years. If you're like most people, you're engaging with the Internet in new ways—demanding more interactivity, rich media, and the ability to upload and download photos and videos.

The volume of large files being transferred over the internet has grown significantly, and experts predict this trend will only accelerate. According to a January 2008 report from the Discovery Institute, new technologies will increase Internet traffic by 50 times its current volume over the next decade.

The demand for improved connectivity is a key factor driving both providers and users to explore fiber-to-the-home broadband as a viable solution.

Fiber-to-the-home (FTTH) broadband refers to the use of fiber optic cables to connect individual homes. These optic systems can transmit a wide range of digital data—such as phone, video, and internet—more efficiently than traditional copper coaxial cables, often at comparable costs. FTTH installations rely on both active and passive optical networks.

Over 1 million households in the United States already have access to FTTH broadband, with more than 6 million in Japan and 10 million globally benefiting from this technology, according to Broadband Properties Magazine. Many believe that widespread adoption of FTTH will address the predicted surge in internet traffic.

What are the pros and cons of FTTH broadband? How exactly do these connections work? Visit the next page to explore the advantages.

The Advantages of Fiber to the Home Broadband

Over 10 million households around the globe have already adopted fiber-to-the-home broadband, due to its numerous advantages over existing technologies.

A major advantage of FTTH, also referred to as FTTP (fiber-to-the-premises) broadband, is its ability to offer much faster speeds and greater bandwidth than twisted pair conductors, DSL, or coaxial cables. For instance, a single copper pair conductor can carry six phone calls, while a fiber pair can handle more than 2.5 million phone calls at once [source: Federal Communications Commission].

Experts from the FTTH Council believe that fiber-to-the-home technology is the only one with the necessary bandwidth to meet projected consumer needs for the next decade, in a cost-effective and reliable manner. The technology is already affordable, as businesses around the world are embracing it, anticipating strong consumer demand.

Fiber offers nearly unlimited bandwidth and an extensive range, making it 'future-proof'—a standard that will be relevant for years to come [source: ICT Regulation Toolkit].

The significantly improved bandwidth of fiber costs roughly the same as existing technologies. The FTTH Council reports that cable companies spent about $84 billion to wire homes a decade ago, but wiring those same homes with FTTH technology costs even less today.

FTTH will be capable of supporting even the most futuristic internet applications that some experts predict. Innovations like 3D holographic HDTV and gaming could become common household items, and FTTH will meet the 30-gigabyte-per-second demands these technologies require. Current technologies can't even come close.

The FTTH broadband connection will spark the creation of yet-to-be-imagined products as it enables new possibilities for data transmission rates. Looking at the past, consider how items we now take for granted were not even in development five or ten years ago. FTTH will fuel the emergence of new products, services, and potentially entire new industries, according to experts at the FTTH Council.

FTTH broadband connections will also offer consumers the ability to 'bundle' their communication services. For example, a consumer could access telephone, video, audio, television, and nearly any other type of digital data stream through a single FTTH connection. This would be more affordable and simpler than receiving these services through separate lines, as is often the case today.

What is the technology behind FTTH broadband connections? Keep reading to discover more.

Active and Passive Optical Networks

Fiber optics relies on light signals to carry data. As the data moves along a fiber, there must be a mechanism to direct it to the correct destination.

Fiber-to-the-home (FTTH) broadband connections rely on two key systems: active optical networks and passive optical networks. Both systems have mechanisms to separate and route data, each with their own set of benefits and drawbacks when compared to the other [source: Ftth Council].

An active optical system employs electrically powered devices such as routers or switch aggregators to manage signal flow and direct it to designated customers. These switches operate in various ways to guide the incoming and outgoing signals. In this type of system, a customer may have a dedicated fiber connection running directly to their home.

On the other hand, a passive optical network (PON) does not rely on powered switches but instead uses optical splitters to divide and collect optical signals as they travel through the network. PONs share fiber optic cables across parts of the network, with electrical equipment required only at the source and destination ends of the signal.

In some cases, FTTH networks may merge elements from both passive and active systems, creating a hybrid architecture.

Passive optical networks (PONs) offer several clear advantages. They are highly efficient, with each fiber strand capable of serving up to 32 users. PONs also have lower installation and maintenance costs compared to active optical networks. With fewer mechanical and electrical components, there are fewer potential points of failure in a PON system.

Passive optical networks (PONs) come with their own set of limitations. For instance, they have a shorter range compared to active optical networks, meaning users need to be located closer to the central data source. Additionally, pinpointing the exact cause of a failure in a PON can be challenging. Furthermore, because bandwidth in a PON is shared among multiple users, data transmission speeds can decrease during peak usage periods, resulting in latency. Latency can severely affect services such as audio and video, which require consistent data flow to maintain quality.

Active optical networks (AONs) offer some benefits as well. Due to their reliance on Ethernet technology, these systems are highly compatible across different vendors. This flexibility allows subscribers to choose hardware that suits their required data transmission rate and scale their infrastructure as needed without major network overhauls.

However, active optical networks (AONs) have their downsides too. For every 48 subscribers, at least one switch aggregator is needed. Since AONs rely on electrical power, they are generally less reliable than passive optical networks.

What implications does this have for global fiber-to-the-home broadband connections? Read on to the next page for further insights.

International Fiber-to-the-home Broadband Connection Development

While the United States is seeing growth in fiber-to-the-home broadband, many nations worldwide are far more advanced in developing their FTTH infrastructure.

Asian nations lead the world in FTTH market penetration, according to a February 2008 report by the FTTH Council, which highlighted the findings from Europe, Asia-Pacific, and North America. Governments in the Asia Pacific region have strategically prioritized FTTH broadband development as a key component of their infrastructure plans, the report noted.

South Korea is a global frontrunner, with over 31 percent of households equipped with FTTH broadband. Hong Kong ranks second worldwide with more than 23 percent penetration, and Japan follows closely in third place with over 21 percent of households having FTTH access.

In comparison to the Asian market, Western countries are still trailing behind in terms of FTTH broadband adoption. Sweden, for instance, has only slightly over 7 percent of its homes equipped with FTTH, followed by Norway at 6 percent and Denmark at 2.5 percent, according to the council's report.

The United States holds the eighth spot globally, with approximately 2.3 percent of households having FTTH broadband connections. This figure, however, represents a significant year-over-year growth, doubling the percentage of U.S. homes with such connections.

FTTH technology continues to expand across the globe, as reported by the FTTH Council. The number of countries achieving substantial FTTH growth is on the rise, with 14 nations now surpassing 1 percent household coverage, an increase from the previous year's 11. The council also noted that 2007 saw the highest number of new FTTH subscribers globally. Leading the charge were Japan, China, and the United States, collectively adding nearly 6 million new FTTH households.

With the increasing demand for broadband capacity, it is anticipated that both governments and private developers will take further steps to expand FTTH broadband availability to a larger number of homes.