Fiber-to-the-X is passé: Fiber-to-the-Device is here.

If you have been following telecom news lately, I am sure 50% of what you read is broadband and fiber-to-the-X. Equipment majors are working in overdrive on optical technology, service providers are increasingly rolling out fiber networks, governments are eager to fund fiber deployments, even industry consolidation is happening with an eye on optical connectivity portfolios.

But first, a quick primer on how data flows through a fiber optic communication network:

The information to be transmitted is either analog signals (like voice) or digital (like data) and is generated by computers, telephones, television, remote sensors, etc. These need to be first converted into a digitized, compressed, encrypted signal that can be sent across large distances. For modern fiber-optic communication systems, an optical transmitter converts these digitized, electrical signals into optical signals to send into the optical fiber (which is part of a cable containing bundles of optical fibers), that is routed through conduits and buildings, different kinds of amplifiers, and an optical receiver to recover the signal as an electrical signal.

Research has shown that while massive amounts of data can flow through optical fiber (the medium), the bottlenecks in increasing individual bandwidth consumption is due to the electrical circuitry at the terminal / handset (the end-user’s device).

Sooner than you think, this might be a problem of the past!

Enter Light Peak by Intel! 

In Intel’s words, “Light Peak is the code-name for a new high-speed optical cable technology designed to connect your electronic devices to each other. Light Peak delivers high bandwidth starting at 10Gb/s with the potential ability to scale to 100Gb/s over the next decade. At 10Gb/s, you could transfer a full-length Blu-Ray movie in less than 30 seconds. Optical technology also allows for smaller connectors and longer, thinner, and more flexible cables than currently possible. Light Peak also has the ability to run multiple protocols simultaneously over a single cable, enabling the technology to connect devices such as peripherals, displays, disk drives, docking stations, and more.” (More details on Wikipedia)

This will speed up adoption of a vast number of applications that we dream of but are scared to use because of bandwidth worries. Streaming video, Internet TV, High definition gaming, etc.

That’s what is exciting other non-broadband players and getting them to invest. Tyco Electronics bought ADC Telecom a few days back, banking on the connectivity products that ADC has. Similarly, Pace Plc acquired 2Wire this week, showing how even cable/satellite players want to have a product portfolio which can cater to the high-bandwidth requiring applications.

Implications: As mentioned in my previous posts, anything that drives up bandwidth consumption will in the end have to be transmitted through fiber. Light Peak actually is another step closer to an all-fiber network. 

As we always say: Bandwidth = Fiber.

Go Green with Optical Fiber

It’s that time of the year when everyone’s thinking about how they can contribute towards improving the environment; about what can be done to save the planet. Here’s how optical fiber is contributing to greening the world we live in.

Two studies conducted in 2008 (one in Europe and one in the US) by PriceWaterhouseCoopers and Ecobilan (commissioned by the FTTH Council) calculated that usage of FTTH-services can have a positive impact on the environment. These life-cycle based assessments studied the environmental impact of the deployment of a typical FTTH network – right from sourcing to implementation to consumption and finally to recycling (cradle to grave). While there is significant difference in the end result, there is consistency in the fact that FTTH networks will be beneficial to the environment. The more the ubiquity of the network, the faster will be the visibility of these positive results.

For Europe, the results showed that all resources in terms of energy and raw material used for producing, transporting and deploying the equipment in the network are offset by FTTH-enabled services like remote-working, tele-commuting, lesser business-related travel, and increased cost-savings from applications like tele-medicine. The study measured the environmental impact to be positive in less than 15 years compared to if the network had not been built. Intelligent deployment using existing ducts, where available, can further improve the positive environmental impact of FTTH.

For the US, interestingly, the environmental impact of the deployment of a typical FTTH network will be positive within less than 6 years considering only benefits associated to telecommuting. Reduction in carbon emissions from reduced road travel and lesser opex on transport infrastructure will be the prime contributors. What the report doesn’t highlight though, is the social impact that can ensue: people working from home will be able to eat and sleep better as well as spend quality time with family. A healthy mind and a healthy spirit to go with a healthy ecosystem and a healthy economy.

That’s not all – because FTTH networks are predominantly utilizing passive components and equipments, there are less moving and electrical parts – which means that less can go wrong with them (saving lots of valuable resources, time, and money) – and there is virtually no power required to run the networks. Compared to other relatively energy-guzzling network types, FTTH networks can really be considered the “Greener” technology.

According to mid-2008 estimates at the prevailing usage-levels, for the first 15 years of an FTTH network implementation, greenhouse gas emission savings per user were of 330 kg approximately. This is equivalent to a car travelling 2,000 kilometers. For the next 15 years, corresponding numbers would be 780kg and 4,600km. With more and more people benefitting from a work-from-home or tele-commuting opportunity, these numbers can only increase. And these don’t factor in any benefits that will result due to e-medicine, e-education, e-governance, etc.

That’s not all. If you thought that’s how optical fiber can be used to save valuable energy, check this link out: Fiber is being used to deliver natural light to places deep inside a building - whether to the lower floors of tall skyscrapers or the interiors like hallways and bathrooms.

Happy World Environment Day! 

Coming soon to your city: Fiber-to-the Home!

Did you ever wonder when India will get onto the FTTH map? Twelve months back, I would have said, “Join the club!” Six months back, I was rubbing my hands in anticipation. And today, I say, “Are you ready for the blazing speeds of Fiber”.

BSNL finally launched Fiber-to-the-Home (FTTH) services in Jaipur last month. With 68 buildings connected initially, work is now on to connect 200 buildings. This comes after the news in July last year that BSNL was planning to implement similar FTTH networks in 25 Indian cities by 2012 impacting over 2 million subscribers.

But while this is still too little, what’s important is that it isn’t too late!

A report by RVA released recently, commissioned by the FTTH Council in the US says that 5.8 million North American homes are now connected with fiber. Assuming 110 million households in the US, this is a penetration of roughly 5% only. Similarly, a report by iDate shows that there were 2.5 million subscribers for FTTH/B in the European Union at the end of 2009. Assuming more than 180 million households, this presents an even lower penetration rate of ~ 1.5%. China and Russia have been fast-tracking their FTTH deployments and have penetrations of nearly 3%, most of which have been within the last couple of years.

That doesn’t sound like we have too much catching up to do.

If the Indian government decides to up the ante and major telcos like BSNL, Bharti and Reliance go full-throttle, we might become the fastest growing FTTH market and among the largest – mirroring the fantastic story that we have witnessed in the Indian wireless sector.

Implications: India has been deploying over 8 million kms of optical fiber for the last couple of years. This has been focused more towards strengthening of the telecom backbone for catering to the increased cellular subscribers. A move to quicken the pace of FTTH rollout will require fiber laying in the ‘access’ network and the ‘last-mile’, not to say further strengthening of the backbone infrastructure. It seems that we should be readying ourselves for a decade of tens of millions km annual fiber consumption.

A high-fiber diet? That’s my kind of diet … … …

Video-conferencing takes off as flights are grounded.

A volcanic eruption might just become the tipping point for video-conferencing!

As Eyjafjallajokull continues to send volcanic ash south and east towards Europe and Russia, (NASA's brilliant images) more and more companies are moving towards video-conferencing and tele-presence solutions to do business. The head of Cisco's Telepresence Technology group, Fredrik Halvorsen, said recently that they have seen a huge spike in usage and interest for their telepresence solutions (see a telepresence video here). Another interesting comment came from the CEO of a Norway-based startup, Videoworks. Even Zimmer said the volcano will make business people think about the benefits of videoconferencing. One more company doing well is Regus, a company that provides meeting rooms and video-conferencing suites. Bookings of the suites jumped 75 % in the US, and 108 % across the U.K., says Guillermo Rotman, president of the Regus Group Americas. But what I really liked, was when Norway’s Prime Minister, Jens Stoltenberg, got stuck at New York, he just took out his iPad and began doing his governmental duties using the Internet. Talk about a PM who’s showcasing why his country is among the most tech-savvy telecom markets!

I am sure if you have corresponded with people in Europe recently, you would have come across atleast one out-of-office message due to the volcanic eruption. Travellers are stranded at airports, frustration is rising, and losses due to missed deadlines or business meetings are piling up. I know of some friends stuck in Europe who have been using Skype to reach out to family and bosses in India. Their time at the airport or hotel is spent trying to work remotely or in watching movies/playing games online. Bottomline – everyone’s tying up bandwidth; while losing out on time that could be spent with family or working more productively.

Enter Video-conferencing!!! Lets look at the benefits of video-conferencing:

• Less travel-related expenses (airfare, hotel, foreign exchange, food, etc).
• Quicker decision-making possibilities and turn-around response times. Reduced down-time.
• Opportunities to collaborate with multiple people in multiple locations simultaneously without worrying about logistical details.
• Non-productive time and energy savings. In fact, utilization in pursuing other revenue-generating ideas or quality family time.
• More effective presentation possibilities. (Tech staff can show through video how to repair a damaged part without having to travel and ascertain what the problem is. Savings for both!)
• Reduced risk of travel-related injury or problems like passport issues, security problems, getting stuck at airports due to missed/cancelled flights or over-active volcanoes.
• Environmental benefits. All the fuel saved will definitely lead to a cleaner and greener planet.

Feel free to add your own in the comments section below.

Implications: The more video the world uses, the more bandwidth gets utilized. The more bandwidth is required, the more broadband networks will need to be deployed. The more broadband becomes a necessity, the more optical fiber demand will grow.

Ergo, More Video = More Fiber.

Q: How do you link Google, Facebook and Twitter together? A: Using an optical fiber-powered Internet

We live in a socially networked world – a world where you think of Facebook when somebody asks you, “What’s the latest Book you read?”; or the only time we think of space is when we are on Myspace; a world where all our linking is beginning to happen through Linkedin; in fact, when my wife said the birds are tweeting, my response was, “Tell them, I am busy on Google Buzz and Orkut, I will tweet back later!”

There are over 105 million registered Twitter users who send over 50 million tweets each day. Last month for the first time, Facebook became the most visited website in the US, for a whole week. With over 400 million users, Facebook Nation can claim to be the third most populous nation on Earth. Similarly, some estimates suggest that Technorati has indexed over 130 million blogs since 2002. In Google’s Annual Report, the Founders’ Letter talks about Youtube getting 1 billion daily views (Page 4, 2009 Annual report). That’s a lot of zeroes…

Speaking of Google, their recent RFI about connecting 50,000 to 500,000 people in the US with ultra high-speed broadband networks, saw over 1100 communities and cities submitting their applications as being the ideal location to set up the experimental network in. Google has also acknowledged that Fiber is going to be the only media that can support the speeds and bandwidths that we are going to need in the future (Annual Report, page 4/5).

We like the sound of that… …

Implications: The market for optical fiber cable was 171 million kms in 2009, according to CRU. The US’s share has been going down over the years, primarily because of the increased consumption of fiber in emerging economies of China, India, Russia, etc. This announcement should make AT&T, Verizon, Qwest, Level 3, Comcast, and all the other players – big or small – to push their fiber investments to the top of their priority list. The US government is doing its bit as well – a lot of the stimulus funds being released are being channelized towards middle-mile or last-mile fiber networks.

Can the US become the biggest consumer of optical fiber once again? It doesn’t hurt to try… … …

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Welcome to the Sterlite Technologies Blog.


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