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TMCnet Dark Fiber Week in Review

September 01, 2012

TMCnet Dark Fiber Week in Review

By Rory Lidstone
TMCnet Contributing Writer

As usual, the dark fiber industry was busy this week, featuring a lot of noteworthy headlines. Let's take a look at some of the highlights.

The Dell' (News - Alert)Oro Group released a report stating that the Optical Transport equipment market was down about five percent during the first half of 2012, compared to the same period last year. This had largely to do with decreased spending in mature markets, particularly the EMEA corridor and North America.

However, the purchasing efforts of emerging markets like the Asia-Pacific region and Latin America managed to put up sufficient numbers which stopped the decline from being even worse, according to vice president of Optical Transport research for Dell'Oro, Jimmy Yu.

Meanwhile, Australi's NBN Co., which is in the process of building a national wholesale broadband access network, is expecting to finish building its network in 2040. During this building period, the company expects to see a 7.1 percent incremental rate of return on a capital investment of $35.9 billion through 2020.

The plan should connect about 5.5 million locations by 2016, with wireless-only households growing from 13 percent to 16 percent by 2020. This means that a fair amount of households will not be buying services from the NBN network, even when it is available.

Zayo announced this week that it has upgraded its fiber route from Spokane to Portland. The enhancement should add 400GB of capacity to the route, further enhancing its ability to service major carriers, industries and businesses in the region.

"The Spokane to Portland route serves as a differentiator for Zayo's wavelength service," said Zach Nebergall of Zayo's Wavelength Product Group. "It provides diversity from other Spokane to Seattle routes, and gives Zayo the ability to serve more customers in the Spokane, Portland and Seattle metro markets."

Country Cablevision announced that it plans to use a broadband stimulus grant to build an FTTH network in the rural mountain counties of Mitchell and Yancey, NC. The United States Department of Agriculture Rural Utilities gave the company $25.3 million to provide high-speed Internet services to more than 33,000 people, 1,900 local business and 120 community institutions.

Unfortunately, this upgrade is a good example of a 'non-market' transaction, according to TMC's Gary Kim (News - Alert), because without the subsidy, Country Cablevision would not have deployed this network.

Praxis Associates selected Ericsson this week to provide optical transport solutions. They will be used in the California Broadband Cooperative's Digital 395 Broadband Project.

Ericsson's (News - Alert) packet optical transport platform, the SPO 1400, offers broadband services to schools, hospitals, government agencies and other critical facilities along a 583-mile fiber route in the Eastern Sierra Mountains in California. The Digital 395 project offers high-speed broadband connectivity that is consistent, regardless of the number of users online.

That wraps up this week in review. Check out the Dark Fiber Channel for more news in this sector.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

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