FTTH-Driving Wireline

The rise of wireless has definitely had a big impact on the traditional telephony growth. However the main reasons why wireline is here to stay include security, reliability of voice quality, and availability, especially in critical and emergency sectors which demands a relatively guaranteed mode of communication. Secondly, the demand for broadband services is gaining momentum in the market and thus, a boost in the wireline technology segment is expected. While there could be a decrease in CPE or the end-user equipment, wired infrastructure will remain the key, with FTTH as the main growth driver for the wireline segment. The optical fiber cable access technology delivers high capacity broadband services, which allows a carrier to deploy a whole range of telecom and entertainment services on a single line.

Wireline Sustainability

While fixed service providers are challenged by the decline in the access lines and traditional voice revenue due to VoIP and mobile phone substitution, with both VoIP and mobile phones having transformed traditional telephony service and changed the role of fixed services from a top priority to a potentially optional one with customers. The solution being adopted by fixed-service providers is to pursue triple-play bundling, that combines IPTV and broadband data services with a traditional voice. With video being the most bandwidth-intensive and latency-sensitive communications services, the existing fixed-line infrastructure can (often with some additional investment) support video, broadband data, and voice services. Fixed-service providers' bundling of broadband and voice services with video, makes triple-play offerings a natural strategy.

In order to keep opex down, it is important for fixedline providers to remember that larger investments go into FTTx that carry large bandwidth loads. Copper plant upgrades offer viable solutions with FTTH as a prime target and PON and Ethernet FTTH equipment will remain the most dynamic. Some new sources of revenue that they can cash in are service bundling for higher ARPU, creating greater customer loyalty by combining different services, expediting launch of attractive services for users and business, and transforming business model from traditional 'telco' to 'mediaco' leaders. Besides, fixedline providers can also offer triple-play services that combine IPTV and broadband data services with traditional voice as well as quad-play services to drive profitability.

Fixed Mobile Convergence is another upcoming trend that has the potential to change the game for service providers and their customers. With the ability to reduce the number of hand-held devices and switch easily between networks, the important benefits of FMC are easier access for users and a simpler interface, typically with access continuity and experience continuity across networks, enabling higher productivity for the end-users. FMC providers today offer seamless data and application connections, seamless voice services, collaboration services, visual network services and video streaming services with industry leading, open standard FMC technologies, that can help to accelerate time to market, bringing in new revenues and relationships for service providers based upon converging different network infrastructures.

FTTH Boom

Experts predict an exponential growth in the cable market in India, which fixedline providers can capitalize on. According to TAM reports, consumption of DTH and digital cable has added up to 29 mn households today, and is set for a boom as the households having cable & satellite televisions have increased by 6% and there is an estimate of digital media to increase by 45% in the next few years. Digital TV and HD TV are also catching up with operators like Airtel and Reliance who are actively marketing the same. Ericsson is also in partnership with Radius Infratel for the deployment of FTTH in 600,000 households and businesses in India with Ericsson's EDA 1500 GPON providing internet speeds of 100 Mbps.

Furthermore to maximize the potential of FTTH, fiber needs to be pushed deeper into the network and closer to the user. The most favorable solution for the fixed-line provider/operator could be a planned service offering, installed based and expansion plans. While Indian operators are still not too aggressive in their FTTH wireline deployments, there is a huge potential for cable service providers-with 80 mn homes in the country having a cable connection. Cable operators today are challenged to deliver cable-centric/cable-friendly FTTH technology that do not require the significant changes to back office and network infrastructure necessary with earlier FTTH cable architectures. Cisco's D-PON solution allows for incremental FTTH growth, on future-flexible, low maintenance architecture, while leveraging the existing back office infrastructure.

Pressing Concerns

The pace of deployment of fixed-line services in relation to the fast growing customer requirements for broadband services can be a challenge to the fixed-line providers/operators. The other challenge could be the cost involved with the migration from copper to fiber required to provide high-speed broadband access. Some of the other key challenges facing fixed-line providers today are retaining existing customers and penetrating new markets to gain new customers.

Improving infrastructure, a measured reduction in tariffs, rapid deployment of services, providing new VAS services, convergence of voice and data, and supporting policies to be framed by the government may help to overcome these concerns and aid in the growth of wireline infrastructure.

The Road Ahead

Enterprise consumers today are increasingly looking at a connected life-having the freedom to continuously access and use content, applications, or services from anywhere, anytime and on their chosen device.

FTTH can enable a connected home solution which allows consumers to access their home multimedia devices and services wherever they are, reducing the need for physical transport and items such as DVDs, compact discs and the accompanying packaging-making it a green solution. It also provides a single point of entry for IPTV and communication services such as multimedia telephony. The upcoming version will allow families to monitor and minimize power consumption in their home. FTTH is the technology solution that has a global acceptance and is already being deployed in India. Important aspects for the sustenance of fixedline are carrier services and internet backbone services.

CIOs need to look at an architecture that can provide enterprise users with this convenience, hence they are increasingly looking at greater integration between fixedline and wireless instead of just fixedline. FMC represents the coming together of all networks, content, applications, services, devices, and management so that the users do not have to manually toggle between the wireless and wireline divide. For businesses with an increasing mobile workforce, FMC creates a unified workspace-one-number ring to all devices, call continuity across devices, consolidated fixed and mobile call history and voicemails to boost employee productivity.

Beryl M
berylm@cybermedia.co.in