Fiber To The Home
The Ultimate Guide
As a fiber optic network developer, you’re licking your chops at the skyrocketing demand for
the internet and communication services.
Last year, over 50% of the world’s population, 3.9 billion people, used the internet. By 2020, it
is estimated that there will be nearly seven connected devices per person worldwide, up from
two in 2010.
On top of this, the media we consume is growing richer and more interactive all of the time. We
want to stream or download high-quality pictures and video with no interruption. DSLs and
coaxial cables don’t have the carrying capacity to support such need.
So what’s the answer for network builders who are responsible for making this all happen?
Fiber to the home broadband connections.
Fiber optic networks have proven to be an effective, low-cost method for transmitting large
amounts of digital information over long distances. However, fiber hasn’t made it all the way to
the home for many internet users as most households still rely on copper wiring for the “last
mile” of internet connectivity.
This is changing.
FTTH is the optimal solution for meeting the unprecedented demand of the future.
Understanding how to design and deploy FTTH networks will be a key success factor going
forward. Investing the time today to understand the technology is a worthwhile endeavor.
Here, you can find everything you need. Start from the top or navigate to specific sections using
the table of contents below.
What Is Fiber To The Home (FTTH) Technology? 3
Advantages Of FTTH Over Other Broadband Connections 4
The History Of FTTH 5
Current Trends In FTTH Deployment 6
FTTH Terminology: The Basics 7
Where Can I Learn More About FTTH? 8
Choosing The Right FTTH Architecture For Your Network 9
Checklist For Evaluating Your FTTH Network’s Design 11
What You Need To Know Before Deploying Your FTTH Network 13
How To Track Your FTTH Network’s Performance 15
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What Is Fiber To The Home (FTTH) Technology?
Fiber to the Home (FTTH) refers to the use of fiber optic cable to deliver broadband internet
connections from a central location directly to the home. In a FTTH network, optical fiber is
used over the “last mile,” displacing DSLs or coaxial wires with lower bandwidth capacities.
“Fiber to the home” is one iteration under the “FTTx” umbrella category which identifies any
broadband network design that connects optical fiber directly to a certain termination point.
Other variants include Fiber to the Premises (FTTP), Fiber to the Building (FTTB), and Fiber to
the Curb (FTTC).
With FTTH, homeowners get faster internet and increased bandwidth. They can stream higher-
quality content and have more devices connected to the internet simultaneously. In addition,
users can get internet and TV service over the same broadband connection.
FTTH is an attractive solution for network builders as the core fiber technology is “future
proof,” meaning it will be able to support broadband demands for the foreseeable future. Fiber
cables have virtually unlimited capacity.
Nearly 20 million Americans have FTTH-enabled high-speed internet today. Fiber network
expansion will be the key to supporting next-generation technologies in the home. The Internet
of Things and AI applications will grow tremendously over the next decade, forcing network
operators to utilize fiber more widely.
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Advantages Of FTTH Over Other Broadband
Connections
Compared to other broadband connection types, FTTH is a far more effective method for
delivering digital data over long distances.
Because of the underlying fiber optic cable technology, FTTH offers faster connection speeds
and nearly unlimited bandwidth capacity at roughly the same cost. Fiber can carry 10x more
data than copper, the primary material used in digital subscriber lines (DSLs). In a future where
internet demand continues to increase exponentially, we will need this capacity to avoid major
broadband bottlenecks.
Fiber can also transmit information 400x further and 10x faster than copper wires. For this
reason, fiber has already become the infrastructure through which so much information travels
across the globe today.
Compared to copper, fiber is much more secure, reliable, and durable. Because fiber cables
transmit information through electrical pulses, they aren’t susceptible to tapping. They are also
resistant to electrical noise, interference, and voltage surges. In addition, fiber cables are
designed to last 30-50 years.
Advantages Disadvantages
Bandwidth 10+ Gbs 1 Gb
Durability 30 - 50 years 5 years
Interference N/A Subject to voltage surges, EMI / RFI
interference
Distance 40 km @ 10,000 Mbps 100 m @ 1,000 Mbps
Security No signal radiation, difficult to tap Subject to tapping
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The History Of FTTH
Researchers first realized the potential benefits of FTTH networks in the 1970s.
Nearly 50 years ago, Dr. Peter Schultz, Dr. Donald Keck, and Dr. Robert Maurer began
experimenting with fused silica, a transparent glass material. They developed the first optical
wire which could transmit data more than 65,000x faster than copper cables could.
Less than a decade later, General Telephone and Electronics implemented the first optical
network in Southern California. Bell also launched a fiber-based telephone network in Chicago.
Even early on, fiber’s advantages were obvious. However, at the time, installing fiber cost too
much to justify delivering it over the last mile of telecommunication networks. Consumers also
didn’t need the nearly unlimited capacity offered by fiber. Instead, developers built fiber to the
curb (FTTC) networks and used copper wiring to bring phone and internet access to households.
Twenty years later, fiber supported 80% of all long-range data transmission across the world.
Due to technological advances, the material has now become the primary choice for delivering
high-speed connectivity. Fiber networks are also much more cost effective to deploy as material
and installation expenses have both come down drastically.
Combined with rising internet connectivity demands, network developers can easily justify the
upfront investment required to build FTTH networks. With the Internet of Things and smart
homes on the rise, it makes more sense now than ever to connect fiber directly to homes.
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Current Trends In FTTH Deployment
FTTH deployment has increased dramatically over the last 10 years. In the near future, it is
projected that tens of millions of additional homes will subscribe to FTTH services.
As of the end of 2018, more than 18 million homes in the U.S. have direct fiber broadband
access. Overall, 47% of all homes marketed to by service providers subscribe to FTTH. Much of
this growth is coming from smaller network providers. However, industry giants, like Verizon
and AT&T, are also investing heavily in the technology.
Asia is the frontrunner in FTTH deployment as more than 225 million people subscribed to
direct fiber broadband internet at the end of 2017. China, Japan, South Korea, and Singapore
lead the charge and are expected to continue down this path. In 2018, FTTH penetration in
China was 26%. In major Chinese cities, FTTH coverage today is nearly 90%. Japan is currently
adopting FTTH faster than any other country in the world at an 18% CAGR.
Italy, France, New Zealand, and Brazil are also rapidly deploying FTTH networks (>10% growth).
According to Future Market Insights, the global FTTH market will grow at a 14.4% CAGR to $37
billion by 2027. This growth will be driven heavily by the IoT space, government initiatives, and
increased demand for high-speed internet.
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FTTH Terminology: The Basics
When it comes to understanding and describing FTTH networks, there are many relevant terms
to learn. Below is a list to help you get started.
• Attenuation: reduction in signal power during transmission
• Passive Optical Network (PON): fiber network consisting only of passive components
• Ethernet Passive Optical Network (EPON): uses Ethernet protocol
• Gigabit Passive Optical Network (GPON): can transmit Ethernet, TDM, and ATM traffic
• Gbps: Gigabits per second
• Central Office (CO): central location from which services are provided
• Optical Network Terminal (ONT): electronics located at subscriber premises
• Optical Line Terminal (OLT): electronics located at CO which control the ONTs served
• Optical Return Loss (ORL): measure of total reflected signal relative to signal transmitted
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Where Can I Learn More About FTTH?
There are many resources available all across the web to learn more about FTTH technology.
The Fiber Broadband Association is a member-led organization founded in 2001 that provides
FTTH-specific advocacy, education, and resources. The aim of the association is to equip
organizations, companies, and communities with the tools they need to deploy fiber networks
successfully. To access the full scope of available resources, you must become a member of the
organization or create a guest account.
The Fiber Optic Association offers in-depth technical information, installation guides, and case
studies on successful FTTH deployment. The site also describes what certifications are needed
by fiber optics professionals for FTTH installations and provides a summary of FOA-approved
training programs. On the site, you can also find textbook recommendations and instructional
videos that help field technicians build their knowledge and skills.
Material sciences global leader, Corning, also provides a number of resources and tools for
network developers who are interested in designing and deploying FTTH networks. For over
150 years, the company has played a major role in the evolution of the glass science space,
which has paved the way for fiber optic’s relevance in today’s world. Visit the company’s
website to purchase fiber network materials and read helpful case studies on past FTTH
developments.
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Choosing The Right FTTH Architecture For Your Network
There are several ways to design a FTTH network.
The following are the most common types of FTTH network architectures:
• Centralized Split
• Distributed Split
• Star Architecture
• Daisy-Chaining
Centralized Split
Centralized split architectures provide flexibility for managing subscribers and connected
equipment. This approach relies on the use of single-stage splitters and is especially valuable
for initial deployments. Typically, this deployment type uses 1x32 splitters that connect to a
central office on one side and individual fibers on the other.
The primary downsides of centralized split architectures are that they can be costly to
deploy on a per-home basis and may take longer to set up than other design types.
Distributed Split
The distributed split approach uses cascading stages in order to split fibers at different
junctures. For example, you may run a cable from the central office into a 1x8 splitter
instead of a 1x32 splitter. From here, eight cables will then run through 1x4 splitters, thus
creating 32 unique fiber routes without using nearly as much material.
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Compared to centralized split architectures, distributed splits are less costly from a labor and
cabling standpoint. On the downside, they are less flexible and don’t accommodate growth
as easily.
Star Architecture
When it comes to splicing, star architectures are especially efficient. The approach relies on
pre-terminated cabling and multi-port terminals in order to avoid splicing at certain
distribution points. Star architectures can be combined with centralized and distributed split
architectures.
One major benefit of star architectures is that they tend to be less expensive on the
materials front. However, additional labor costs may be incurred for initial deployments.
Daisy-Chaining
With daisy-chaining, network developers connect one cable through multiple fiber access
terminals. Daisy-chaining is fast and can also be used in conjunction with centralized and
distributed split architectures.
This approach is cost-efficient, both from a labor and materials standpoint. On the downside,
network deployment may require specialized splicing, which can increase costs.
Your architecture type decision should take into account how you want to deploy capital
(labor vs. materials), the skill of your labor force, and the characteristics of the local
geography.
One of the biggest factors to consider is the density of your customer base. Typically,
distributed split architectures are best for urban environments where you may need to scale
rapidly to meet demand. In rural areas, centralized split architectures tend to be the most
cost effective.
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Checklist For Evaluating Your FTTH Network’s Design
Once you’ve designed a FTTH network, you need to evaluate it in a number of ways before
committing to deployment.
On the financial front, there are many different calculations that you can do to pressure test
your design from several angles:
• Total cost of deployment (labor and materials)
• Total initial CapEx vs. subscriber connection costs
• Total initial CapEx vs. lifetime operational costs
• Total initial CapEx vs. revenue generation
Your total deployment cost should include both your labor and material expenses. Fiber
architectures can differ widely depending on your needs and the local geography. For example,
if you plan to use daisy-chaining throughout your network, you will incur higher labor costs as a
result of the specialized splicing required.
It’s also important to calculate how much initial CapEx you plan to deploy relative to your
subscriber connection costs. Cutting costs on the front end could mean additional expenses on
the back end, a trade that may not be worth your while.
In order to calculate your ROI, you need a firm understanding of your lifetime operational costs
and subscriber revenues. Although this may seem obvious, carefully model your cash flows to
ensure you can recoup your initial CapEx investment and cover new subscriber fees while your
network expands.
Use the following questions to guide your thinking:
1. How much will it cost to get a FTTH network up-and-running?
2. Once your network is installed, how much does it cost to connect subscribers to services?
3. Is your initial CapEx deployment worth it compared to how much revenue you will
generate?
4. Will you generate enough cash flow to continue developing your network?
5. How will you finance the project?
On the implementation side, consider:
• Labor intensity
• Deployment time
• Subscriber connection time
• Network capabilities
• Future integrations
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Much of your labor spend will depend on the skill set of your technicians and the design of your
FTTH network. Make sure that your field technicians have the knowledge and skills necessary to
execute a deployment strategy before committing any finances to the project.
It’s also critical that you can build your FTTH network and connect subscribers quickly.
Competition across markets will continue to increase with rising internet demands. Therefore,
being able to scale efficiently will help you stay in front of other network developers and
generate cash flow early.
You must also take a forward-looking approach to your network and consider how it will
integrate with future technologies. Not only should you provide services that are relevant
today, but you also need to be ready for tomorrow’s innovations.
Here are a few additional questions to consider on the operating side:
• How long will it take you to build the network?
• How long will it take you to connect subscribers?
• What can your subscribers’ access through your service given network components?
• Will your network be able to support future technology?
Although it’s impossible to predict the outcome of every variable related to your network’s
deployment, answering these questions will help you evaluate your design before making costly
capital investments.
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What You Need To Know Before Deploying Your FTTH
Network
Beyond evaluating the design of your FTTH network, there are other high-level factors to
consider before deploying the network:
• The skill of your labor force
• Existing fiber infrastructure in your market
• Your other fiber developments
• Future integrations with broader networks
• Government regulations
Is Your Labor Force Skilled Enough To Execute The Proposed Network Architecture?
You can either build your network internally or outsource the work to a third-party designer.
Although it may be more cost effective to manage the work internally, an unskilled labor
force and poor deployment could result in a network that performs poorly - a must-avoid
outcome. Provide high-quality training to your technicians or pay a premium for an
outsourced partner that will get the job done right.
Is There An Existing Infrastructure In Place That You Can Use?
If you can, take advantage of already-installed cables and components as this will save you
labor and material costs. Be sure that your hardware can integrate seamlessly with the
existing infrastructure, should you choose to go this route. Otherwise, you may end up
spending more to amend connectivity issues.
How Does This Project Relate To Your Other FTTH Network Developments?
Whenever possible, use the same components when deploying fiber networks. Gain
economies of scale by deploying the same network elements across all of your projects.
Additionally, standardize training for all of your network technicians and ensure that every
development is executed using the same processes.
Can Your Network Easily Be Integrated Into A Broader Network?
It’s also possible that another network developer will want to purchase your infrastructure in
the future. The resale value of your FTTH network depends heavily on how easily it can be
integrated into another network.
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On the other hand, you may also want to purchase someone else’s network. In this case, you
must perform a thorough evaluation of their components and infrastructure before moving
forward with any integration.
What Are The Government Regulations Around FTTH?
Before deploying a network, it’s important to know the government regulations around
FTTH developments. Regulations can differ across municipalities and countries.
You need to know which documents, permits, and easements are required in your region. If
you want to install cable in the ground, you may need a “Certificate of Public Convenience”
before you can begin working. Some entities enforce a “Dig Once” policy in order to prevent
developers from constantly uprooting up the same areas to install additional cable. For
projects involving aerial fiber, you may have to obtain a “Pole Attachment Agreement.”
Your designers should also understand local fiber optic codes and standards as these impact
which materials you can use. In the U.S., cabling standards are set by TIA or Telcordia.
However, internationally, standards may be issued by ITU or ISO/IEC.
You may also need sign-offs from local professional engineers and cooperation from local
organizations in order to gain access to their properties. Public installations may also require
supervision from local authorities that can provide on-site support, such as traffic
management or police supervision.
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How To Track Your FTTH Network’s Performance
After you’ve deployed your FTTH network, you must be able to evaluate its performance.
Keeping tabs on all of your network’s elements can be extremely challenging, especially as you
grow to serve new clients. Without a comprehensive platform to consolidate network data in
one place, you can’t effectively monitor current operations or plan for future growth.
OSPInsight helps network operators plan, design, and run fiber optic networks through a
powerful software platform. With OSPInsight, maintain organized fiber data records, plan and
design expansive networks, and conduct robust analyses on network performance in real time.
If you are preparing to deploy a FTTH network, contact our team today to learn more about
how our fiber network management software can support your fiber developments over the
long term.
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