FTTR Technology Driving Second Fiber Boom in Multiple Markets

Fiber to the room (FTTR) all-optical networking is bringing a second fiber transformation revolution and is experiencing explosive growth in China and other international markets. FTTR-B technology – meaning FTTR solutions purpose-built for business customers – gives operators the confidence to commit to bandwidth guarantees, the tools needed to fully utilize their installation and maintenance advantages, and the means to develop the small and micro enterprise (SME) market.

Statistics show that,in the Chinese market, tenders for over 500,000 sets of FTTR-B devices were completed by the end of 2023. This figure is projected to surpass 2 million by 2026. In China international markets, SMEs including hotels, shopping malls, and campuses are experiencing a growing demand for broadband upgrades, and they increasingly need FTTR-B to transform their networks.

Traditionally, SMEs have overwhelmingly built their own networks using equipment purchased on the open market, but that leads to fragmented approaches that lack standards for network design, deployment, and O&M.

That typically causes multiple problems at these SME sites, including bandwidth bottlenecks, poor Wi-Fi coverage, and network failures – all exacerbated by the reality that most SMEs don’t have significant IT or networking personnel on staff. They need help.

That’s where FTTR-B solutions are delivering massive value – and helping to transform SME environments for operators and their customers. An FTTR-B all-optical network solution can be used to replace the traditional self-built network approach of SMEs, featuring ultra-rapid deployment, streamlined O&M, blazing-fast speeds, and comprehensive coverage via an all-optical network.

For example, a full-service luxury hotel in Phuket, Thailand, recently faced a dilemma with its existing network. High-speed internet connections have become a must-have component of the modern travel experience – whether for business, travel, or both. Add in a luxury destination and the expectations are even higher: Guests expect exceptional Wi-Fi wherever they are on the property. As the original property and its infrastructure aged, its internet connectivity could no longer meet the needs of modern travelers.

The property had previously relied on a 100 Mbps Very High Speed Digital Subscriber Line (VDSL), which in turn fed Wi-Fi gateways that covered two or three rooms apiece – resulting in poor coverage and actual bandwidth of less than 10 Mbps for guests. Wi-Fi-related complaints became common, harming the overall customer experience and clashing with the resort’s premium brand and image.

ZTE worked with a leading Thai operator to identify an opportunity to overhaul and upgrade the hotel’s internet connection with an all-optical Wi-Fi solution leveraging FTTR-B technology. Since the hotel was set to undergo a wider renovation project, the timing was perfect.

ZTE’s FTTR-B solution leverages a P2MP architecture to provide SMEs with premium network experiences such as ultra-gigabit Wi-Fi access, multi-Wi-Fi hotspot coverage, and unified intranet O&M, helping SMEs rapidly deploy all-optical networks. By transitioning from a single fiber line to an FTTR-B all-optical network, a single connection can be expanded to the entire network.

FTTR-B supports EasyMesh networking technology, with a roaming switching time of less than 20ms, and it relies on a set of FTTR-B devices that can support up to 300 terminals concurrently. For operators, this improvement not only enhances customer retention, but can also generate a 300% increase in ARPU and an 80% reduction in network churn rate, according to ZTE. 

When the refurbished property reopened, it did so with blazing fast internet and complete coverage across the property, thanks to True 2 Gbps broadband packages paired with FTTR-B technology. Out went the multiple rooms sharing a VDSL connection that further degraded over wireless. In its place: one main dual-band Wi-Fi 6 Optical Network Terminal (ONT), along with 26 room ONTs on each floor, which meant that every single residence had its own ONT.

The combination of optical fiber and Wi-Fi 6 produced gigabit-plus speeds throughout the property, with no dead zones. Every floor has 26 hotspots that connect up to 256 smart devices. That has enabled smooth gaming, video streaming, and conferencing experiences for guests – and significantly improved overall customer satisfaction in the process.

ZTE points to several technical features of its FTTR-B solution that are either industry firsts other otherwise differentiate it in the market:

Fiber typically has a long lifespan of several decades, bringing long-term stability to SME SME environments. Moreover, the FTTR-B solution is upgradeable to 10G PON and 50G PON without re-cabling, which helps “future-proof” valuable SME investments in their networks as well.

Because SMEs rarely have the on-site networking and IT staff capable of handling intensive O&M tasks over time, ZTE’s FTTR-B solution includes a streamlined O&M app for remote management, fast service provisioning, standardized network installation, and other tools that can reduce OPEX by 30%, according to the company, as well as greatly simplifying initial deployment.

For operators, FTTR presents an enormous untapped opportunity to expand their enterprise markets. There is pent-up demand across international markets for broadband upgrades in a wide variety of SME sites, from hotels to shopping malls to school and office campuses and more. That translates to revenue growth opportunities for operators that can rapidly deliver 2Gbps all-optical networks that drive SME customer satisfaction.