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FTTH Con: U.S. FTTH connections top 2 million

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ORLANDO--Fiber-to-the-home connections in the U.S. have more than doubled from a year ago to surpass the 2 million mark, according to data released today from Render Vanderslice and Associates.

As of September, 2.14 million U.S. homes were connected to fiber, more than double the 1.01 million connected a year earlier, RVA said. The current annual growth rate of 112% is up from the 99% seen in March and down from the 213% seen a year ago from a smaller base.

Fiber now passes 9.55 million U.S. homes, up 56% from a year earlier.

And FTTH video subscribers are up 160% from a year earlier to 1.1 million.

Verizon Communications accounts for about two thirds of the country’s FTTH subscribers and more than two thirds of the homes passed by fiber.

“While overall FTTH take rates had been suppressed while Verizon was building its FTTH infrastructure faster than it was adding customers, the company is connecting customers more quickly now,” said the FTTH Council, which released the results of RVA’s research in conjunction with the Telecommunications Industry Association.

However, Verizon’s take rates are low compared to the rest of the industry, RVA said. The average take rate for all FTTH services is nearly 27% (up from 22% six months ago). But while Verizon reports a 19% take rate for its fiber broadband service, for example, the average take rate among the rest of the FTTH sector is nearly 52%.

Though Verizon has the lion’s share of the domestic FTTH business, analysts have been surprised by the growth rate of other FTTH providers. There are 369 FTTH providers in the U.S. today, 5% more than there were a year ago, RVA said.

Bell companies account for 69% of the country’s FTTH subscribers, RVA said, while other incumbent telcos account for 16%. Competitive local exchange carriers hold 6% of FTTH subscribers, and those in partnership with developers hold another 5%. Municipalities hold more than 3%.

RVA’s numbers don’t necessarily include multidwelling units, where fiber often extends only to building basements, and subscribers are served more directly by advanced DSL over copper.

Also this week, the FTTH Council pointed out that, as of the end of last year, the U.S. was dead last in a list of 11 countries with more than 1% FTTH and fiber-to-the-building market penetration. Topping the list was Hong Kong, with 21% penetration, South Korea with 20% and Japan with 16%. The U.S. had just 1% penetration.

However, the FTTH Council suggested earlier this week that the new data could change the U.S. position in those rankings.

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© 2008 Penton Media Inc.

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