HOUSTON - 30 September 2009 - The mission to accelerate the deployment of superfast fiber connections is making steady progress despite the global economic downturn.

The number of FTTH/B subscribers grew by 15% in the first six months of 2009, with more than 5.5 million new subscribers added worldwide, according to the latest update to the global ranking of FTTH/B economies, jointly issued by the three FTTH Councils of Asia-Pacific, Europe and North America.

Compiled every six months by the three FTTH Councils, and presented today at the FTTH Council North America's annual conference and exhibition in Houston, Texas, the global ranking includes all economies where more than 1 percent of households have a FTTH/B connection.

At the end of June 2009, 21 economies met this threshold. Indeed, all of the top 10 ranked economies in the global ranking have more than 5 percent of their households connected with FTTH/B.

The Asia-Pacific region still leads the global ranking with South Korea, Hong Kong, Japan and Taiwan taking the first four places, followed by the Nordic countries of Sweden and Norway.

The top three global economies in terms of the total number of new subscribers are China, Japan and the United States. With nearly 800,000 FTTH/B subscribers added in the first six months of this year, the US was able to maintain its position among the top 10 FTTH/B economies worldwide.



"In North America, fiber to the home continues to grow rapidly, driven by high satisfaction among those who have it, as well as the obvious competitive bandwidth and connectivity advantages," said Joe Savage, President of the FTTH Council North America. "Here in the world's second largest FTTH market, we are seeing fiber to the home really changing the way people live, learn and work - with a growing number of subscribers using their services to work from home and to access innovative applications for remote education and tele-medicine."

"We are happy to see a steady growth of FTTH/B in Europe even in times of the economic downturn", said Karel Helsen, President of the FTTH Council Europe. "With Slovakia as the only new entrant in the Global Ranking we have now 14 European countries in this important benchmark of FTTH/B development. Nevertheless, big countries like France, UK and Germany are still missing and two million subscribers in Europe is still a small number compared to 6 million in North America and more than 30 million in Asia-Pacific. We will therefore continue our efforts to communicate the advantages of FTTH/B to accelerate the deployment of fiber-networks in Europe."

The president of the FTTH Council APAC, Yoon Kun Loke comments: "It is good to see that APAC countries continue to lead in FTTH deployments. Governments and Service Providers realize the need to change from traditional to knowledge based economies that will bring about both economic and social benefits."

The next update of the FTTH global ranking, reflecting the status of fiber-connected households at the end of 2009, will be presented at the FTTH Council Europe's annual conference in Lisbon, Portugal, on February 24-25, 2010.

Editor's note: The FTTH global rankings include both fiber-to-the-home (FTTH), where the fiber connection reaches direct to the household, and fiber-to-the-building (FTTB), where fiber terminates inside the boundary of a multi-tenant building.

As expected, the Opposition has slammed the Government's moves to require Telstra to seperate into two different operating companies. Opposition broadband spokesman Nick Minchin says the Government's moves are "radical" and "risky" and will disadvantage investors.

Minchin who oversaw the sale of Telstra during the Howard government era said "I think what the Government may well be doing is using the fiction of its $43 billion National Broadband Network proposal to force change on Telstra," he said.

"Instead of holding a gun to the head of Telstra, destroying shareholder value, threatening shareholders, customers and employees, it should sit down and work through co-operatively with David Thodey and the new management team at Telstra."

If Telstra does not voluntarily restructure the organisation the Government will legislate the split and also force Telstra to sell off its cable network and 50 per cent share in Foxtel.

Earlier today, Opposition Leader Malcolm Turnbull used Question Time to ask Prime Minister Kevin Rudd how the $43 billion proposal will deliver value for money.

"How many subscribers will it have and what will they be asked to pay?" he said.

"How can Australians have confidence in the Government's capacity to deliver value for money when it is willing to spend $43 billion of taxpayers' money without even a business plan?"

Mr Rudd dismissed Mr Turnbull's questions, accusing the Opposition of failure in its Telecommunications polcies. "The reason the Government took the extraordinary step of saying that we would build a National Broadband Network is that we have seen 12 years of conspicuous failure on broadband on the part of those opposite"

A news article from the ABC http://www.abc.net.au/reslib/200909/r436125_2096415.asx

David Thodey, Telstra's Chief Executive Officer has responded to the Government's proposed regulatory reform package in a media release today.

Quoting from the release...

"While we are disappointed the Government has felt it necessary to introduce this legislation, Telstra remains committed to working with the Government to find a solution that is in the best interests of the industry, the nation, Telstra and our shareholders," said Thodey.

"It is Telstra's view that many aspects of this package are unnecessary and need never be implemented if a mutually acceptable outcome can be reached on the National Broadband Network. Telstra supports the Government's NBN vision. We are willing to discuss options around separation," he said.

Thodey said that Telstra would carefully examine the package over the coming days.

"At all times, our approach to regulatory reform and the NBN will continue to be driven first and foremost by the need to protect the interests of our shareholders. We are actively and constructively engaged with Government. Much remains uncertain, but we will continue to provide updates whenever it is appropriate to do so," he added.

With the recently government annoucement on the regulatory reform which includes Telstra being require to choose between being a retail operator or a network operator, the question that should be on many developers minds is where does that leave them with Velocity.

Velocity is a Telstra's Fibre to the Home solution delivered by their Smart Communities group. This is very much a retail solution and with structure seperation depending on which way Telstra chooses to go could result in the end of this program. If Telstra becomes a retail operator only (which in my opinion is most likely - see here for my option) then Velocity will be no longer as they will not be able to own wireline networks and also retail services.

This is also backed up by the draft legistation to be introduced into parliament. Under division 2 - Structural Seperation" Telstra "will not supply fixed-line carriage services to retail customers using a telecommunications network over which Telstra is in a position to exercise control and Telstra will not be in a position to exercise control of a company that supplies fixed-line carriage services to retail customers using a telecommunications network over which Telstra is in a position to exercise control". So that means Velocity and Bigpond become mutually exclusive.

With the mandating of FTTH for all greenfield estates progressing forward, developers will be required to make a decision over which FTTH provider to choose. A Telstra path may not be in their best interests because in 12 months time the landscape of Telstra will have changed so much. Choosing Telstra for FTTH has now become a big risk.

The Rudd government has announced this morning a backage of reformed to telecommunication regulations that will pave the way for the break up of Telstra.


Communications Minister Stephen Conroy said the reforms would address the telco's high level of integration with the aim of promoting greater competition and consumer benefits.

"For years industry has been calling for fundamental and historic micro-economic reform in telecommunications," Senator Conroy said, further adding "Today we are delivering this outcome in Australia's long-term national interest."

This has been something which everyone - except Telstra - has been asking for since the deregulation of the Telecommunications market. The reformed will provide Telstra with the flexibility to choose its future path as either a wholesaler or retailer, but no both.

"It is the government's clear desire for Telstra to structurally separate, on a voluntary and cooperative basis," Senator Conroy said. "The government believes it is possible to achieve a win-win outcome in the interests of Telstra, its shareholders and, more broadly, all Australians."

The draft laws yet to be submitted to parliament require Telstra to lose its cable network and divest its interests in Foxtel. This will open the payTV industry up significantly particularly in terms of Foxtel being delivering other networks.

"The measures in this legislation will finally correct the mistakes of the past, said Senator Conroy. "The government will require the functional separation of Telstra, unless it decides to voluntarily structurally separate. What we're saying is that you can't be in all platforms" refering to their vertically integrated business model of Telstra.

In my opinion Telstra is more likely to choose the path of a Retail operator and sell their network assets into the NBNco. Telstra is much more than just a network operator; they have the Directories division which publishes both the Yellow and White pages, Sensis, Trading Post, Whereis, CitySearch, GoStay Hotels and LinkMe. They have their mobile network - which it seems they would be allowed to keep - Bigpond and all the retail, corporate and government services. This all represents a significant revenue stream to Telstra.

Selling their network assets to the NBNco under the structure seperation framework would return them a significant amount of cash and/or shareholding in NBNco. They would be buying services from the NBNco at the same price as any other provider, so they would not be disadvantaged. Their cash windfall could then be used to re-invest into their mobile network which is already one of the best - if not THE best - in the world. This makes senses based of the amount of money Telstra has spent of advertising mobile broadband. With an upgrade to LTE or higher speeds with HSPA there is no reason the mobile network could not be also used for fix line access as well.

The Fibre to the Home Council is promoting a webinar regarding the installation of the ONT indoors.

Event Intro Text
Tuesday, September 15, 2009 at 2:00 PM EDT presented by Guy Swindell, Applications Engineering Manager, OFS
Tuesday, September 15, 2009 at 2:00 PM EDT presented by Guy Swindell, Applications Engineering Manager, OFS

Description
While Asian FTTH providers have deployed indoor ONT’s for years, North American carriers have historically preferred to install the ONT on the outside of the residence. However, the migration of fiber into the multi-dwelling unit (MDU) is driving broader acceptance of indoor ONT applications in the U.S. market. Concurrently, FTTH providers in single-family residential markets are taking a new look at ONT placement and the possibility of cost-savings with indoor units.
In this presentation, we will examine the realities of taking fiber inside the customer’s residence and the technologies needed to make such installations practical. Additionally, case studies of indoor ONT applications will be reviewed and the pros and cons of various approaches to indoor fiber installation will be evaluated.

Event Registration: To register click here