Why fiber investment is important for cable operators

Reliance Jio plans fiber broadband network in 900 townsCable operators looking to upgrade their networks must deploy fiber to remain competitive, said Iskratel’s Chief Architect Simon Cimzar at FTTH Conference 2017 in Marseille, France.

Iskratel’s Simon Cimzar said there are an increasing number of considerations that operators must make when looking to upgrade their existing networks – presenting a whitepaper on the “GPON vs. DOCSIS 3.1 in Six Simple Points”.

Because the customer should always be number one, cable operators which don’t deploy fiber might be left behind.

In the current market, cable operators are faced with an increasing number of competitors offering fiber-to-the-home (FTTH) broadband services through gigabit-capable Passive Optical Networks (GPON).

“By using the DOSCIS 3.0 standard, operators can offer gigabit services in the downstream, but find themselves limited by the upstream throughput it provides,” said Cimzar. “This leaves operators with the quandary of whether to remain with the standard coax network and upgrade to the newer DOCSIS 3.1 standard, or make the leap and become FTTH operators themselves.”

Fiber deployments come at a lower Total Cost of Ownership and provide a better return on the initial investment than DOCSIS 3.1, which can be migrated to at the same cost but requires further, continued investment.

Another important factor is the potential for symmetrical upload and download speeds that GPON offers – something which isn’t possible with cable.

Meanwhile, Iskratel’s Chief Technology Officer Damijan Slapar said operators which continue to rely on box equipment for fiber networks will not be as successful as those working with system integrators which can install, manage and monitor end-to-end solutions, enabling the provision of new services and generation of additional revenue streams.

“Following the disruption to the telecoms market from OTT players, operators are in an advantageous position,” says Slapar. “Instead of having to find ways to fight against cloud-service offerings from traditional web service providers, they can now prepare their own and capitalize on the market’s shift towards virtualization.”

Managed OTT services provide operators with an easy win in terms of service delivery, while they  benefit their local community in the long term by empowering residents, driving innovation and facilitating new businesses.