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FEATURE GIGABIT EUROPE
Lightning fast
According to our survey, the top driver cited by participants across all operator categories was technology leadership and perception. Tis was followed by new customer acquisition (40 per cent) and the ability to increase broadband revenues (38 per cent). Te ability to support emerging high-speed applications ranked surprisingly low at only 22 per cent, while the ability to offer advanced service bundles that would leverage these faster speeds ranked even lower. Tis discrepancy may be attributed to the fact that there are few applications that require gigabit broadband speeds, but that gigabit broadband will be sufficient to support any emerging applications. Unfortunately for operators, predicting
bandwidth requirements has become particularly challenging, as new applications continue to be developed and consumers continue to find new ways to utilise large amounts of bandwidth. Tis is further compounded by the ever-increasing number of broadband-enabled devices. Depending on the service mix of the customer’s household,
bandwidth requirements may vary considerably, which further complicates network planning. In some sense, gigabit broadband provides operators with an ‘insurance policy’ against an uncertain future. For example, a basic triple-play service (two
simultaneous streams of high-definition broadcast TV or streaming video, Internet and telephony), will require about 20Mb/s of bandwidth. However, if this includes additional features such as multi-room DVR, video-on-demand as well as over-the-top (OTT) video, the amount of bandwidth required could easily exceed 50Mb/s. In addition, growing interest in bandwidth intensive services such as 4KTV, continue to push the limits of bandwidth demand. Not only is demand for downstream
bandwidth increasing, but new applications such as on-line and multi-player gaming, video-sharing, interactive applications, e-learning and telepresence are driving the need for higher upstream bandwidth. As a result many operators are re-engineering their networks to increase the upstream speed
capabilities and in many cases offer symmetrical service. At present, only FTTH architectures enable
cost-effective deployment of symmetrical high speed services. And while many operators are offering symmetrical 100Mb/s service, a number of them are re-engineering their networks to support gigabit service. Tis provides a significant competitive advantage over operators using DSL and cable HFC networks. In future, we expect technology leadership
will continue to drive development of broadband services, but operators are going to have to work harder to stay ahead of the pack. In Japan we see signs of what may come, where in April 2013 Sony-owned internet provider So-net launched a multi-gigabit service, delivering 2Gb/s download (and 1 Gb/s upload) at the affordable price of $45 (€37.6) per month. One day, perhaps as soon as 2020 according to our survey respondents, we may all take gigabit broadband for granted.l
Teresa Mastrangelo is founder and principal analyst at Broadbandtrends LLC
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EST. 1961 AS BRITISH AS THE DAY IT WAS BORN
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