Competition Drives FTTP

What is the big driver for FTTP deployments?   In a word–competition, if this was not already obvious. FTTP is not necessary with captive customers. DSL is just fine for the Telcos thank you. And the MSOs without competition would romp with 3 Mbps cable modem service.

What is interesting is that both the telcos and MSOs are driving to the exact same architecture with FTTP. The names telco and MSO will soon lose their distinct meanings.  Both will become broadband access providers. The resulting differences will be due to their legacy networks and systems, but these differences will not be consequential.  Both will be delivering the exact same services across virtually the exact same access architecture. Since they will be selling largely undifferentiated services, they will be forced to compete on price and bunding.

With both having to run just to keep up, the telcos and MSOs are in what is known as a Red Queen scenario. In Lewis Carroll’s Through the Looking Glass, the Red Queen said, “It takes all the running you can do, to keep in the same place.”  And this is what will be so good for our fair industry. Lots of fiber will have to be installed by the telcos to keep up with the MSOs, and the MSOs will not be able to rest on their laurels with DOCSIS 3.0. Who benefits from this race?  Why, it is the consumer of course.

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