Insatiable Demand for Bandwidth and Need for 'Future Proof' Network Architectures Driving the Global Deployment of Fiber Optic Networks

Business Wire, May 20, 2008

PALO ALTO, Calif. -- Broadband access networks are undergoing a change in terms of architecture and the applications and services being run on them. This change will have fundamental implications on the way access networks and associated business models are viewed. Service providers must consider network architectures that can address the challenges posed by the changing trends in end-user broadband usage.

New analysis from Frost & Sullivan (http://www.technicalinsights.frost.com), Assessment of Broadband Access Networks, finds that fiber optic networks, despite their high capital expenditure, are looking as an increasingly viable long-term solution for providing a sustainable customer experience without straining the network.

If you are interested in an analysis, which provides manufacturers, end users, and other industry participants with an overview, summary, challenges, and latest coverage of the assessment of broadband access networks, send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state, and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

"The availability of rich multimedia content and services such as Voice over Internet Protocol (VoIP) is driving the growth of broadband services across the world," notes Frost & Sullivan Technical Insights Research Analyst Zachariah Thomas. "Governments and policy makers are actively adopting broadband-friendly policies and offering incentives across the board to improve their standings in broadband league tables."

Governments across the world have begun to view the Internet and the access to it as a positive influence on their populace and the economy in general. Local loop bundling policies adopted by governments have seen the emergence of new participants and increased competition in the broadband market. This has resulted in lower prices and hence, higher user uptake.

The availability of flat rate pricing models has largely influenced the adoption of broadband services. While this was a good move in the early days, it has become a challenging proposition with the growing need among users for greater bandwidth. This is putting pressure on access networks, both from an operational and financial perspective.

"The services and applications the consumers use on their broadband service have changed from activities such as web browsing and e-mail to more latency-intolerant applications such as streaming video and VoIP," says Thomas. "This has had a negative impact on the variable costs of service providers without providing additional revenue."

Going forward, the success of broadband access services will depend on their ability to support and monetize the increasing demand from bandwidth-intensive applications such as peer-to-peer (P2P) and streaming video. Broadband service providers must be open to innovative business models and pricing schemes to survive the challenges posed by these trends.

Assessment of Broadband Access Networks, a part of the Technical Insights program, provides a technology overview and outlook for broadband access services. Furthermore, this research service includes detailed technology analysis and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.

Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and research services.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's Team Research, Growth Consulting and Growth Team Membership empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com.

Assessment of Broadband Access Networks

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