Forget DSL Or Cable, Broadband Users Want Their Fiber

Some 4.2 million high-speed Internet users received fiber in the first 
quarter of 2008 versus 2.5 million who received cable, Point Topic analysts 
said.

By W. David Gardner
InformationWeek

July 3, 2008

URL: http://www.informationweek.com/story/showArticle.jhtml?articleID=208802657



Deployment of fiber-optic broadband service has broken out for the first 
time, passing cable and DSL Internet service users, according to a survey 
of the world's broadband subscribers by Point Topic.

The U.K. market research firm said 4.2 million high-speed Internet users 
received fiber in the first quarter of 2008 versus 2.5 million who received 
cable. "It's a significant milestone for fiber-optic broadband," Point 
Topic CEO Oliver Johnson said in a statement Wednesday. "Where it is 
available, consumers will take fiber over other broadband technologies."

The report removed all doubts that consumers might decline to install fiber 
because they think they don't need or want additional bandwidth. The Point 
Topic report concluded that price is a significant factor in choosing 
fiber. The fast speeds of fiber also appear to be a factor in subscribers 
choosing the technology, according to Point Topic.

"If you look at the cost per megabit, then DSL comes in at around $20 per 
megabit per month taking global averages. Cable does better at roughly $12, 
but they are both completely eclipsed by fiber where costs can get as low 
as 50 cents per megabit per month," Johnson said in a statement.

Verizon Communications' FiOS fiber-optic-based service remains the fiber 
leader in the United States. The company said 1.8 million customers were 
receiving broadband service over its fiber network at the end of the first 
quarter.

While the United States holds the lead in fiber installations, China is 
closing in fast, with fiber adding more subscribers than cable and DSL.

The role of governments in the deployment of broadband technologies also 
can influence rollouts of different technologies.

"There are problems in the deregulated markets when it comes to major 
infrastructure investment," said Johnson. "Fiber deployment is expensive, 
and in the U.S. and Europe there are significant regulatory hurdles to 
overcome."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu

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