FTTH Could Add More Than $25 Billion in Economic Activity by 2010
WASHINGTON, Sept. 18 /PRNewswire/ -- The Fiber-to-the-Home Council
(FTTH) today urged the U.S. Senate to accelerate the deployment of new
fiber networks and related technology by passing pending telecom reform
legislation. The FTTH Council said the bill (The Advanced
Telecommunications and Opportunities Reform Act, HR. 5252), which promotes
competition by establishing a system of national video franchising and
backs the development of municipal broadband networks, would spur billions
of dollars in new economic activity, cut consumers' telecom costs, generate
new jobs, boost productivity, and enhance consumers' lifestyles.
"Widespread deployment of fiber-based networks to American homes and
businesses is critical to U.S. competitiveness in the 21st century," FTTH
Council President Joe Savage said. "Smart public policies can speed the
construction of fiber networks by removing outdated regulations that block
video and broadband competition."
Speaking at a briefing for Congressional staff as part of direct
outreach to senators by consumers and businesses committed to faster
deployment, Savage said fiber-to-the-home is the critical next step in the
information economy and could stimulate more than $25 billion in economic
activity by 2010.
"Nearly every day, American innovators are finding new ways to tap the
power of the Internet. But taking full advantage of these exciting new
services requires increased Internet capacity that is not available with
copper-based networks," Savage said. "Fiber networks are the best way to
get the bandwidth we need."
"Fiber networks are good for our communities, and passing this bill
means more fiber to more Americans sooner," Savage said.
Michael Render, President of RVA Market Research, who joined Savage at
the briefing, said the United States is now the world's fastest growing
FTTH market, though it still runs far behind Japan in total deployment. He
said more than 670,000 U.S. homes are now wired for fiber networks (as of
April 1, 2006), compared to just 38,000 in April 2003, and fiber
connections grew 215 percent in the United States between spring 2005 and
spring 2006. Despite the surge, Render noted that only about 1 percent of
U.S. homes are currently connected to fiber networks.
This room to grow creates enormous potential for long-term economic
benefits. For example, Render estimated that the installation of
residential fiber generates about $370 per home in additional sales of
consumer electronics -- or about $169 million between spring 2005 and
spring 2006. He said direct spending for the installation of FTTH totaled
about $1.2 billion during the same period. By 2010, Render estimated that
FTTH installations will produce $21 billion in total infrastructure
investment and about $4.5 billion in additional sales of consumer
electronics.
Fiber-to-the-home also facilitates the creation of in-home businesses.
Render said that current FTTH subscribers report they take advantage of
their fiber connections to work an additional day per month from home.
About The FTTH Council
The FTTH Council is a non-profit organization established in 2001 to
educate the public on the opportunities and benefits of fiber-to-the-home
solutions. FTTH Council members represent all areas of broadband
industries, including telecommunications, computing, networking, system
integration, engineering, and content-provider companies, as well as
traditional telecommunications service providers, utilities and
municipalities. There are over 100 companies belonging to the North
American FTTH Council, and the organization has recently expanded its
efforts internationally through its sister organizations, the FTTH Council
Europe and the FTTH Council Asia- Pacific. Complete information on the FTTH
Council, as well as today's letter to members of Congress, are available at
http://www.ftthcouncil.org.
SOURCE Fiber-to-the-Home Council
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Related links:
http://www.ftthcouncil.org
CONTACT:
Joe Savage of Fiber-to-the-Home Council,
+1-503-635-3114, president@ftthcouncil.org
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