FTTH and HFC Modernization: How Optical Transceivers Power Universal Broadband

FTTH and HFC Modernization: Optical Transceivers Drive Network Modernization for Universal Broadband

There’s a familiar debate happening within broadband right now – Fiber to the home (FTTH) or Hybrid Fiber Coax (HFC)? While HFC has been the dominant choice for a while, especially for brownfield installations, FTTH is on the upswing with the ever-increasing innovative options that allow for fiber installs in both new builds and network upgrades around the world.

In a whitepaper from USTelecom, they advocate for a “modern regulatory environment that advances rather than undercuts tech modernization.”

The worry is that outdated regulations are placing too much emphasis on maintaining old copper networks rather than speeding universal access to reliable, high-speed internet. And while they don’t advocate for one kind of next-generation broadband network architecture over another, they make a good point.

In this blog, we’re looking at how the choice between FTTH and HFC are impacting network operators now and into the future.

Will HFC Continue to Dominate Over FTTH?

When it comes to network modernization in the U.S., FTTH and HFC networks have been locked in a seemingly never-ending popularity contest. On one hand, fiber now passes more than 88.1 million U.S. households, but coaxial cable is still currently in the top spot for delivering broadband, and understandably so. Installing an all-fiber architecture in an old commercial or residential building can be nearly impossible and costly.

But as the country continues to grow and more buildings are being built from the ground up, fiber is the top choice. Naturally, HFC’s share of the market will diminish as this rise in fiber takes over. RVA forecasts that telecom companies, cable MSOs, private competitive providers, municipalities and rural electric cooperatives will invest $150 billion on FTTH in the U.S. over the next five years, with much of that coming from BEAD program funding.

Why FTTH is Leading Network Modernization for Universal Broadband

Part of the rise in fiber’s popularity has to do with an ongoing effort to bridge the digital divide – connecting rural communities, low-income households, and underserved urban areas to high-speed data. The U.S. government has recognized that broadband service providers have been neglecting these populations because of the high cost to deploy infrastructure to these regions and is working to fix it.

The Prysmian Group forecasts that 82 million U.S. households will receive FTTH services by 2027, and according to Lightwave, 87% of network operators are planning to use fiber networks to bridge the digital gap in their areas of service.

One reason behind the growing adoption of FTTH lies in PON technology. Using passive optical components and point-to-multipoint topology, PON networks allow multiple subscribers to share the same fiber infrastructure, reducing deployment and maintenance costs. In this way, PON offers a sustainable, high bandwidth and more cost-effective (by not using active networking equipment) alternative to other broadband delivery mechanisms.

Additionally, residential and business subscribers are becoming increasingly savvy in today’s competitive markets. Based on RVA market research, 63% of internet users surveyed now say they would prefer fiber if they had a choice, versus 24% coax and 13% in favor of wireless, DSL or satellite.

With continued advancements in PON technology, FTTH has a strong future as network operators bridge the digital divide in regions where high-speed connectivity is essential. After all, bridging the digital divide means giving underserved, rural subscribers the same opportunities as their urban counterparts to access advanced applications from telemedicine to cloud services.