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A Necessary Amenity: Fiber Optics PDF Print E-mail
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Friday, 09 May 2008
A Necessary Amenity: Fiber Optics

Would you build a house without a finished roof? Is it really necessary to add doors and windows? Naturally, buyers expect these things to be a part of the home they purchase.

But what happens when you offer something more than expected…say, a whirlpool bath, a community pool, fitness center or even a fiber-optic network? These added amenities attract more buyers to your property.

You may not know it yet, but the technology network offered in a community has become a more important consideration to buyers than the community pool. They want to know that their home connects to a network that provides high bandwidth access to new and exciting services with easy integration. They want to buy a home that will stand the test of time in today’s fast-paced, ever-changing world. The solution to attract this future-focused buyer is a fiber to the home (FTTH) network.

Many developers are jumping on board to install their own fiber-optic network. According to the Fiber to the Home Council, the rate of FTTH implementation in the U.S. doubled last year to 2.3 percent of all homes. However, the U.S. remains behind many other countries when it comes to fiber. Taiwan, Denmark, and South Korea all have significantly higher rates of fiber penetration. If we want to keep up with the rest of the world in terms of technology, FTTH implementation is critical.

 

What’s driving the need for fiber?
Internet traffic increases dramatically each year, and more online movie, music, and gaming options promise to drive demand for bandwidth ever-higher for some time to come. Internet traffic in the U.S. today is typically measured in “exabytes.” An exabyte contains approximately 50,000 times the amount of all the information contained in the Library of Congress, the largest library in the world, with more than 120 million items on approximately 530 miles of bookshelves.

In 2001 U.S. Internet traffic totaled 8.4 exabytes. Analysts at Nermetes Research expect traffic to reach more than 600 exabytes by the year 2012. From YouTube, IPTV, and high-definition images, to 3D games and virtual worlds, a new wave of technology is swelling into a flood of Internet traffic.

Unfortunately, the cable and DSL options available to most U.S. homes simply will not be able to handle these demands. No matter how hard they try, traditional Internet solutions cannot support future bandwidth demand the way fiber optics can.

Changes in television viewing habits add to the strain on the bandwidth of networks connected to our homes. The demand for high-definition channels and more Video On Demand content will only increase. Many in the industry expect that most television entertainment will soon be transmitted over Internet Protocol, or IP. IP television (IPTV) will greatly increase the entertainment options available, and FTTH networks are the fastest, most reliable way to accommodate this new technology.

 

Is fiber the best solution?
Unlike copper wiring, which has many limitations, fiber offers virtually unlimited bandwidth within fine strands of glass. Optical electronics transmit data through each strand at the speed of light, and advances in this technology continue to push more information through the same glass fibers. This means that as future applications drive more and more bandwidth demands, the capacity of fiber-optic networks is readily available to accommodate them.

Fiber does not conduct electricity, so it is more reliable than coax and copper cable. This means fewer service interruptions during storms and power outages. With the growth of bandwidth-hungry technologies, the demand for fiber has risen dramatically.

FTTH is the only network structure with enough bandwidth capacity to handle the demands of emerging technologies both on the Internet and in the home. Without fiber, there is little chance a homeowner can keep up with the demand of tomorrow’s communication and entertainment services. Only fiber provides sufficient capacity to enable multiple services to work together seamlessly over a residential network.

 

What makes fiber a vital amenity?
Fiber, with its reliability and ability to transmit vast amounts of information, is vital for the integration of many “connected home” technologies, such as remote home monitoring that allows homeowners to control thermostats and alarm systems via the Internet. Buyers are increasingly concerned about rising energy costs in their home.

Fiber can easily support home monitoring solutions that cut energy costs by regulating heating and cooling systems. Many utility companies have started offering lower rates for residents in energy efficient homes.

Additionally, “smart grid” services from some utilities provide further savings for homes that can be regulated during peak consumption periods. With home monitoring services through a fiber-connected smart home, residents can lower their energy consumption and help lower their monthly bills.

Rising auto fuel costs are also driving the need for fiber. More professionals now choose to work from home to not only save money, but also to decrease their carbon footprint. More and more businesses offer telecommuting options to employees – but only if they have the ability to stay well-connected to the office without project-stalling delays. Without a network that supports secure and reliable teleconferencing, file sharing and other advanced technology needs, telecommuting will never win the boss’ confidence. Even if you don’t telecommute, most people benefit from having a network that supports their ability to conduct work away from the office.

When it comes to fiber deployment, all networks are not created equally. In many communities, fiber is run throughout the property, but not connected directly to the home. Bringing fiber along the “last mile,” but leaving the last 100 feet to copper, limits the benefits and abilities of the fiber network significantly. In order to provide the highest level of bandwidth capacity, the network must be connected directly into the home.

 

The critical ­connection
Many developers are confused about the benefits of fiber-optic telecommunication for their projects. However, the real risk is not including fiber as a key amenity.

According to TecHome Builder magazine, residences that feature a direct fiber-optic connection have a higher property value compared to those that do not. This is just one additional benefit that attracts buyers when they are considering a new home purchase.

“It’s almost certain that if a resident is given the choice between two similar developments, one with fiber and one without, they will choose fiber. It’s that important.” said Brian Gullette, national vice president of business development for Connexion Technologies, a national fiber-optic amenity company.

In today’s housing market, many developers are using technology to differentiate themselves from the rest of the competition, and buyers are taking notice. Potential buyers need to know that their homes will be built to last, and connectivity capabilities are a big part of that.

Brookwood Properties elected to ­install a fiber-optic network in its ­development.

“In today’s market of high-definition television and the use of the Internet, a community’s telecommunications infrastructure is becoming increasingly important to homebuyers,” said Brett Turner, president of the company. “In order to meet the demand of today’s homeowner and to keep up with future technologies, we felt that a fiber-optic network was a must for our community.”

 

Tips on FTTH
To make the most of the networks, a developer may want to consider granting a private easement to an independent FTTH amenity company. They use their own capital to build the networks, and then partner with the best service providers to deliver voice, video, and data services to residents.

Another vital benefit of using an independent network builder is the ability to add new services seamlessly. When big telcos implement fiber networks, they are built specially for that company’s services. For example, if you wanted to add advanced surveillance or security services, all of the infrastructure could potentially have to be upgraded, overbuilt or even replaced to support this new technology. However, when the network is built to specifications designed to accommodate new services from a variety of providers, adding new technology is a far simpler endeavor. By making sure a network is adaptable, the development will never become outdated.

Fiber can no longer be ignored as a “luxury” amenity for homes. It is an absolute necessity to be prepared for the future. If you think selling homes is hard in a down market, imagine selling a home that doesn’t allow residents to work from home, have the most up-to-date systems or even have enough bandwidth for all their favorite high definition TV channels. How will you answer when a potential buyer asks if your community is built with a FTTH network?

 

The future is now
Some developers may think that services requiring the speed of fiber are still a distant possibility, and that traditional networks will be able to supply all of their needs for the time being. However, we must remind ourselves that television was invented just 50 years ago, the personal computer came into our homes 30 years ago and 15 years ago, a little thing called the Internet was gaining popularity. It is amazing how quickly a technological solution is adopted into our daily lives.

Those who say, “we’ll never need that” or “that will never take-off” are usually found to be wrong. For example, Western Union said the telephone wouldn’t succeed back in 1876, “This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.”

Consider this an opportunity to be on the forefront of a revolution in home technology and be willing to discover what FTTH can do for you and your residents. If you don’t start asking about implementing fiber in your development, don’t be surprised when potential home buyers start asking you why you don’t have it. SLDT

 

Digital Edition (May 08)

May 2008 Digital Edition