management discussion and analysis
Now the ‘BIG’ question…is our bandwidth infrastructure ready? Are the copper heavy networks of today equipped to handle this explosion in data traffic as anticipated and meet the consumer expectations for immediate & high speed access from multiple devices? It should not come as a surprise to anyone that the answer is no. xDSL technologies have allowed the wireline industry to expand the lifetime of legacy copper networks for broadband Internet connectivity. Despite several innovations in DSL technology, copper is gradually reaching its limits, because homes which are connected with copper loops of 1 km or more, which do not allow for bandwidths of 50 Mbps (megabits per second) or greater (for example, the equivalent of two full high-density streams and a high speed Internet connection). In Internet history, consumers’ insatiable hunger for ever-increasing bandwidth and new innovative services have always strained the seams of copper networks. The capacity of legacy copper networks in the ground in different phases could never reach the ‘sell-by’ date, without getting exhausted.
Skyrocketing demand for high-speed Internet services is necessitating another wave of infrastructure investment. The fact remains that fiber is THE future and fixed-line networks globally require upgrade and investments. The proponents of fiber have been often dismissed for their ‘fiber only’ mentality. But this is not the case, future has a place for both wireless and fixed line and the two go hand in hand. A future without mobile connectivity is unthinkable, but it has limitations and it depends on fiber to succeed.
While the whole world is talking about wireless and going gaga over 3G, 4G and a possibility of 5G, an interesting figure here depicts the usage pattern of wireless devices. Almost 70% of data consumption on wireless devices globally happens over Wi-Fi networks. This means while people need mobility, they love accessing high-speed Internet through fixed wireless networks which are connected by fiber/ copper. Nevertheless, the remaining 30% data, which is consumed on cellular networks also ultimately, terminates at the nearest wireless tower connected by fiber.
Source: IMcKinsey
Historically bandwidth-hungry products always emerged to fill newly available bandwidth.
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