Fiber-to-the-home success relies on video, says ABI Research

In 2005, 4 percent of the world's homes that made their broadband connection over fiber-to-the-home (FTTH) received video services. By the end of 2011, according to a new study from ABI Research, that figure will be 55 percent.

This growth, however, will not play out in the same way in all parts of the world, according to ABI Research. Although Japan and South Korea have the world's highest rates of FTTH deployment, the regulatory environment in those countries prevents the addition of most TV services. In an effort to protect the market positions of cable and satellite operators, their regulatory regimes prevent operators from offering TV except in the limited form of video-on-demand. China also shows great potential, but its government is also limiting the licenses it is issuing to telecom operators.

Video-over-fiber take-rates in North America and Western Europe, particularly Scandinavia, where the regulatory climate is more favorable, will be higher, according to ABI Research, which recently released “PON and Active Ethernet FTTH Deployments.”

In the United States, the only stumbling blocks for a company such as Verizon are the franchise agreements required to offer video services. Verizon has been working to secure a multitude of franchise agreements at the local level, and has also been highly focused on obtaining statewide and nationwide franchises.

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