Despite the continued development, increasing subscriber rate and immense boost in internet speed, fiber-to-the-home (FTTH) technology may not be a mainstream option for the U.S. and Canada for around a decade says a new report.
Research group IHS found that the global proliferation of FTTH is "not being reflected in North America," citing high costs, lack of demand and no true competition as staunch impediments.
Addressing one of those hurdles, IHS senior analyst Lee Ratliff said, "Despite the wishes of broadband activists, technology evangelists and communications equipment manufacturers, Americans remain largely ambivalent regarding broadband performance."
Ratliff also points out that despite the marginal increase in cost for better service, the majority of broadband subscribers stick with the most basic service available. If customers aren't spending on current premium services, he rationalizes, service providers will be slow to push new technology; they'd be competing for consumer dollars that just may not be there.
Last month Google bolstered its support for the cutting-edge technology by announcing a testbed in Kansas City where it plans to roll-out 1Gbps service to anywhere from 50,000 to 500,000 residents.
Discussing the company's FTTH push in a video, Google's Vice President of Access Services Milo Medin justified the need for increased internet speed. "The communications network is the thing that's falling behind in the speed of innovation," he posited.
The company laid out its complex plans in February. It believes the implementation of "ultra high-speed Internet" will have a beneficial effect on everyone, though some have raised concerns over the cost of such an endeavor and just what that would mean for consumers eager to switch to a higher-speed service.
One analyst calculated Google could end up paying nearly $8,000 to connect a single home. Apply that figure to its claim of connecting up to 500,000 homes and you get a multi-billion dollar venture - one that might not bear fruit for the company (or others) for years.
While 1Gbps internet may remain nascent in North America for years, the benefits it brings may prove vital as more and more people find themselves connected to the internet via myriad devices.
Do you already enjoy FTTH? Or are you aching for the option to upgrade? Let us know in the comment section.
