& cplSiteName &

Fiber Makers Perk Up

Light Reading
OFC/NFOEC News Analysis
Light Reading
2/25/2004

LOS ANGELES -- OFC 2004 -- New fiber? New deployments? Yes, manufacturers of optical fiber here say they believe the three-year slump in the optical fiber market may be beginning to thaw, and they even have some new product to show for it.

OFS was touting a new deal to supply MCI (Nasdaq: WCOEQ, MCWEQ) with its new TrueWave REACH fiber on a 1,500km long-haul link in California, saying it was the first purchase of the fiber manufacturer’s medium dispersion fiber. Medium dispersion fiber is designed for longer distances and can carry wavelengths in two bands, both the C-band and the L-band (see OFS Wins MCI Fiber Deal).

John Fee, a fellow with MCI, says the new fiber will enable savings on operational costs as well as providing more upgrade capacity.

“This ultra-long-haul link is being deployed because it’s much more automated, you can turn up wavelengths a lot faster, and medium dispersion will allow us to move to 40 Gbit/s,” says Fee.

Meanwhile, optical cable manufacturer Corning Inc. (NYSE: GLW) was attacking the other end of the sector -- fiber-to-the-premises (FTTP). Corning announced its NexCor fiber, which is specifically designed for access networks. The NexCor fiber can handle higher-power optical sigals that may be needed by service providers to transmit triple-play voice, video, and data services in fiber access networks (see Corning, Optical Solutions Team on Fiber).

So is a full-blown fiber revival underway? Far from it. The market for optical appears to have stabilized, but prospects for growth -- either in long-haul networks or access networks -- are not yet clear.

Data from the CRU Group shows that, while the optical fiber market stopped shrinking in the second half of 2003, it’s still stalled out with flat growth prospects. Total worldwide optical fiber sales in terms of kilometers deployed dropped 3.4 percent from 2002 to 2003.

OFS officials are low-key about the MCI deployment, saying they don’t see it as a harbinger of another long-haul fiber upgrade cycle. “I don’t see a whole lot of long-haul upgrades happening for a few years,” says Paul Neuhart, president and COO of OFS. But he says there's enough business to keep the market viable. "Long-haul is not dead."

Corning officials, meanwhile, appear excited about the prospects for the fiber market in connection with incumbent FTTP deployments.

”FTTP is one of the biggest opportunities we see,” says Barry Linchuck, Corning's director of global product line management for optical fiber. He says Verizon Communications Inc.'s (NYSE: VZ) deployment of FTTP alone could result in fiber connections of 1 million homes in 2004, which could translate into 1 million km of new fiber. (Linchuck says FTTP deployments generally equate to 1 km of fiber per home passed.) MCI’s Fee says that, unlike in the 1990s when massive fiber networks were built on speculation, most new fiber builds are being based on business-case analyses. “I think that’s how it will be from now on,” he says.

Fee also notes that the prices of fiber and optical components are still coming down, making it an economical solution, especially in places like the access network: “Fiber and copper are almost at parity."

— R. Scott Raynovich, US Editor, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
materialgirl
materialgirl
12/5/2012 | 2:22:20 AM
re: Fiber Makers Perk Up
What type of cost parity does fiber have with copper? Just the cost to lay a kilometer, including material costs and labor only? What about the cost of what-ever they connect to? What other costs (installed base of switches, tech training) are still hidden? Does this parity mean a radical and immediate transition to all fiber network buildouts?
wise
wise
12/5/2012 | 2:22:13 AM
re: Fiber Makers Perk Up
Isn't the cost of a whole DSLAM about the same as a single VCSEL?
jayja
jayja
12/5/2012 | 2:21:48 AM
re: Fiber Makers Perk Up
Verizon reported at the Fiber to the Home Council two years ago that for many of their routine new construction scenarios (i.e. "greenfield") fiber is equal or less expensive to install than copper.

The speaker also mentioned that the NPV of lower maintenance of fiber vs. copper over the system lifetime discounted to a $150 savings in installed first cost.

SBC reported six months prior to that at the NGN conference that fiber was approaching first cost parity for new construction with copper.

As Robert Plant said, "Now's the time, the time is now".
bonnyman
bonnyman
12/5/2012 | 2:21:41 AM
re: Fiber Makers Perk Up
In 2003, FTTH costs (including electronics, outisde plant construction, etc.) were slightly higher (perhaps 5%) for municipal cable TV overbuilds than those for hybrid fiber coax if tradtional cable TV construction methods were used.

If the overbuild was mostly aerial and the town owned the power utility, FTTH was actually about 10% cheaper than hybrid fiber coax since there was no need to replace any overcrowded poles with FTTH (thanks all dielectric cable placed near the conductors).

I don't have similar numbers for telco twisted pair systems, but I suspect if the pair counts are very high and/or the cable runs very long that twisted pair outside plants would be even more costly.

Outside plant costs (cable, installation, etc.) make up 80% to 90% of FTTH costs, depending on whose number you use.

Single mode, loose tube fiber cable costs are under a penny per foot per fiber these days (except for fairly low fiber count cables).

A.B.
Featured Video
Upcoming Live Events
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events