Forget DSL Or Cable, Broadband Users Want Their Fiber (TechWeb)
By W. David GardnerInformationWeek Thu Jul 3, 2:25 PM ET
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."