FEATURE FIBRE TO THE HOME


that meet the requirements of the investors. In our view, there is a third issue: governments


also need to set policy that encourages long-term vision and investment.


Myth #5 Governments have more urgent issues to


solve that require public money


Really? What could be more important than dealing with the economic recession, coping with the challenges of an ageing population, and planning for an environmentally sustainable future? FTTH could help to solve these problems. Studies show that, as broadband availability


increases, so does a country’s productivity. Lately, analysts have attempted to quantify how economic growth relates to broadband speeds. According to a 2011 study carried out by Ericsson, Arthur D. Little and Chalmers University, a doubling in broadband speeds produces a 0.3 per cent increase in gross domestic product (GDP). Tere’s no doubt that the roll out of FTTH networks would boost to Europe’s information and communication technology (ICT) sector, which currently contributes about half of Europe’s productivity growth. FTTH also creates jobs, both during the


construction phase (directly) and as a result of new jobs in the ICT sector (indirectly). In the UK, for example, it is estimated that an investment of £15 billion (€25 billion) in ICT, including smart grid and broadband, would create or retain 700,000 jobs, of which 360,000 would be small business jobs, according to the Information, Technology


THE FTTH COUNCIL EUROPE


The FTTH Council Europe (www.ftthcouncil.eu) is an industry organisation with a mission to accelerate the availability of fibre-based, ultra-high-speed access networks to consumers and businesses. The Council promotes this technology


because it will deliver a flow of new services that enhance the quality of life, contribute to a better environment and increase economic competitiveness. The FTTH Council Europe consists of more than 150 member companies. Register at www.ftthconference.eu for the


FTTH Conference 2014, to be held in Stockholm, Sweden, from 18 to 20 February 2014. If you are longing for a better internet connection then join the ‘I Want Fibre’ page on Facebook www.facebook.com/ pages/I-want- fibre/174248502650699


@fibresystemsmag | www.fibre-systems.com


Studies show that, as broadband activity increases, so does a country’s productivity


and Innovation Foundation (ITIF), a Washington- based think tank. FTTH networks are inextricably linked with


sustainability. Why build an overlay network just for smart meter data, when FTTH could easily handle the extra traffic? A reliable, high- bandwidth connection is also a pre-requisite for medical services, such as remote healthcare monitoring of elderly patients via video link. It reduces the strain on the transport system and the environmental cost of commuting, by creating more opportunities for teleworkers; and it enables


When different countries will get to ‘fibre maturity’ (when 20 per cent of households have a subscription to fibre)


Country Japan Korea China Taiwan Australia USA


Canada Russia France Germany Italy UK


Spain Sweden


Netherlands Portugal Switzerland Denmark European Union


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 After 2022 Source: Heavy Reading for FTTH Council Europe. February 2013 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 After 2022


virtual classrooms in remote communities, and other learning opportunities. Interestingly, a study by Taylor Reynolds of the


Organisation for Economic Cooperation and development (OECD) suggests that cost savings of between 0.5 per cent and 1.5 per cent over 10 years in each of the electricity, transport, energy, and health-care sectors resulting directly from broadband ‘would justify the cost of building a national point-to-point FTTH network’. However, he also noted that some of these public benefits would only be captured if everyone has access to the same services. With so much to be gained from universal


access to high-speed broadband, we believe this reinforces the role that public authorities have to play in setting broadband policies and objectives.


Where are we now? As we have already noted, Europe lags behind other regions of the world in FTTH deployment, and may be in danger of falling even further behind. On current trends, Europe as a whole is expected to reach ‘fibre maturity’ – defined as the point where 20 per cent of households have FTTH subscriptions – in 2022, which is two years later than last year’s forecast. And some countries, such as the UK and Germany, will reach fibre maturity well aſter this date. FTTH has been clearly identified as the


end-game for broadband access networks. European operators and policy makers have been seduced by advances in copper-based broadband, which extend the lifetime of the existing infrastructure, but delay the implementation of the more desirable architecture: FTTH. Tis may end up costing us dearly in the long run. We believe there is an opportunity cost of waiting to deploy fibre. Other regions of the world will gain an economic advantage as they roll out FTTH ahead of Europe. Te longer it takes to act, the more Europe will struggle to catch up.l


Hartwig Tauber is director general of the FTTH Council Europe


12 FIBRE SYSTEMS Issue 1 • Autumn 2013


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