Fiber to the Home Spreads Slowly Across Western Europe According to Yankee Group Report

LONDON--(BUSINESS WIRE)--Dec. 15, 2003--

Optical fiber remains the most future-proof broadband access technology and will penetrate the European residential market gradually over the next decade.

“Residential Fiber Slowly Becomes a Reality in Western Europe”

Emerging business models for the development of fiber to the home (FTTH) across Western Europe feature an open network approach that separates ownership of infrastructure from that of service provision--a clear departure from the traditional telco model whereby the network operator typically provides services to the end user. A two-part Yankee Group report, "Residential Fiber Slowly Becomes a Reality in Western Europe," presents these developing business models.

"The cost of infrastructure remains the biggest hurdle to FTTH deployment," says Jonathan Doran, Yankee Group Broadband & Media Europe senior analyst. "And the open network model will help diffuse these costs, enabling new service providers to enter the market without the burden of network investment."

Part one of the report recommends the open network approach to FTTH participants, with public/private partnerships involving local governments, utilities, landlords and third-party service providers to facilitate FTTH penetration. Doran also suggests that broadband service providers remain pragmatic about their choice of access technologies. DSL and cable will dominate until at least 2010 and FTTH will develop in patches, forming part of a mixed infrastructure network--a trend that already has begun with companies such as B2 and FastWeb.

Despite high deployment costs and the dominance of DSL and cable, residential fiber slowly is making an impact in Europe. While traditional, infrastructure-based examples will remain part of the picture, the newer open network approach, characterized by a combination of private and public participation, will be a key enabler for driving FTTH development.

NOTE TO EDITORS

For interviews, contact Jonathan Doran, [e-mail].

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The Yankee Group (http://www.yankeegroup.com)

The Yankee Group is the global leader in communications & networking research and consulting. The company helps businesses understand the opportunities, risks, and competitive pressures of developing, deploying, and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America, Europe, Latin America, and the Pacific Rim.