Need for Interconnectivity Leads to Growing Fiber Demand

7.14.2014, Written by Annie Wang


Image is Creative Commons, Attribution Flickr User btphotosbduk
Image is Creative Commons, Attribution Flickr User btphotosbduk

With almost 3 billion Internet users in the world, the growing demand for interconnectivity commands a sense of urgency when it comes to accessing and exchanging data. The traditional copper-based technologies that are commonly used today are not only slow, but are also starting to cause frustration amongst consumers who cite a lack of current Internet service providers competition and regulation as their main pain points.


Optical fiber is the perfect antidote to this problem – while initially more expensive to install than copper, optical fiber can reach speeds over 100% faster than the current average Internet speed, and for longer distances. Even though the U.S. continues to predominantly rely on broadband connections that use fixed lines like DSL and cable, industry analysts are predicting the dawn of a new telecommunications era.


ElectroniCast Consultants, a market research firm, recently released a report that outlines the explosive growth predicted to impact the fiber industry. A suggested average annual growth rate of 14.5% is expected to affect fiber optic connectors in the telecom sector, topping $1.3 billion in revenue through 2017, while an average annual growth rate of 8.4% is also expected to affect the fiber optic circulator market and reach $315.5 million during the same period.


Part of this sudden demand for fiber is due in part to the many issues (including Internet speed) that the technology addresses. Higher reliability, better security and improved cost-effectiveness are all problems that have dominated discussions on telecommunications recently and continue to be the main areas of concern for consumers and organizations’ virtual activities. The recent explosion of online streaming popularity validates the public’s distancing from traditional technologies, seen especially in the rise of people choosing to only watch video online.


“Pay TV is definitely declining,” said John Fetto, a senior analyst at Experian Marketing Services. “The young millenials who are just getting started on their own may never pay for television.”


FTTHFTTH (fiber-to-the-home) has penetrated over 18% of all U.S. households and the number of homes connected to all-fiber networks now exceeds 7 million, while other estimates state that the distribution of FTTH/B (fiber-to-the-business/building) subscribers in North America will increase 22% by 2015. Businesses are also making the move towards utilizing fiber networks in the office, as FTTB is rapidly becoming a necessity for companies looking to do more, faster.


BandwidthAT&T’s Velocity IP Plan is already available to 16,000 business customer locations in the city of San Francisco, and will continue to expand wireless and broadband networks to reach another 1 million business customer locations by the end of 2015. Plans to expand their FTTB initiatives have also been laid out by Google, which will enhance existing and start-up cloud-based companies. Faster Internet speeds are imperative to developers and companies looking to not only create the next generation of online services, but to also aid in the protection and security of online business practices.


“The future of the Internet will be built on gigabit speeds,” said Google Fiber General Manager Kevin Lo in an interview. “We’re going to do our part to help move the web forward.”


With the future of the Internet still being created and initiatives to install fiber optic technology nationwide, an increased demand for certified fiber technicians has also been generated. Field Nation’s skilled contractor marketplace has thousands of qualified fiber field professionals who are ready to staff any fiber project. Go HERE to learn more.


Field Nation has also created fiber optic certification opportunities for service providers looking to capitalize on this growing industry. Meet the growing need for qualified fiber service and expanded skillsets HERE.