RVA forecasts significant future growth for North American FTTH market

JANUARY 3, 2008 -- The North American market for fiber-to-the-home will accelerate in the next five years, according to a new report from RVA LLC Market Research and Consulting (search for RVA). The current annual numerical increases of approximately three million FTTH homes passed (homes that could technically order direct fiber service) and one million homes connected will be significantly larger by 2012, say analysts.

Cumulative FTTH market numbers currently stand at over 9.5 million North American homes passed (of which 8 million are actively being marketed to) and 2.1 million homes connected. RVA projects the number of North American homes connected by FTTH will exceed 15 million by 2012.

According to Michael Render, principal of RVA, there are several important reasons for the growth, and many types of providers will play a role. "Currently, Verizon, along with hundreds of small telephone companies and a number of facilities-based CLECs, MSOs, and municipalities, is involved," says Render. "While we anticipate the day when AT&T,
Qwest, and Bell Canada start to overbuild FTTH, we still believe overall FTTH market acceleration will occur even if these large incumbents remain committed to serving existing homes with fiber-to-the-node/DSL throughout the entire five year forecast period."

FTTH-served consumers usually have the option of more Internet bandwidth in both directions and more standard- and high-definition television channels. The capacity of
FTTH can also allow applications that are not possible with other types of broadband delivery. Initial examples include simultaneous viewing of multiple HD channels (without excessive compression) and two-way high-definition video conferencing for personal, business, or medical use.

For more information about the report, visit RVA LLC Market Research and Consulting

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