Historically, it has been proven that the wireline industry hasn’t provided enough enticement for fiber and broadband deployment. That is, until now. According to Deloitte, due to the lack of incentives, there’s a huge need for significant investment. So, what were the wireline telecommunications companies investing in if it wasn’t fiber deployment? Think satellite TV, content and advanced business services.
However, the future holds something vastly different than what’s been considered the norm. in the past. Something that was once unclear, has become crystal clear and that’s the return on investment that fiber can provide. Pair the multiple strategies for securing a return on investment, with a clear path for the applications that will drive traffic over the fiber and you have a recipe for expansion. This shouldn’t be taken lightly either, as we’ve already seen companies up their fiber footprints, including AT&T, Verizon and others.
Jeff Heynen — an analyst with Kagan, an offering of S&P Global Market Intelligence, provides three primary examples.
- A shift to cloud-based services & the need for connecting a greater number of data centers to support the associates storage equipment.
- Network operators delivering video turning to fiber for delivery and uncompressed feed, all while maintaining picture quality and reducing latency.
- Network operators making the transition to 5G technology
To read more about the expansions and learn how and why these networks are being expanded, click here.