Fiber-to-the-Home Made Easy

(As featured in the January issue of Sustainable Land Development Today)
By Kent Brown

AFL Telecommunications is helping developers evaluate and implement FTTH.

Fiber-to-the-Home (FTTH) and creation of a “technology amenity” is rapidly being discovered by developers as a powerful addition to what makes a community unique. In fact, RVA Market Research – a leading FTTH analyst, estimated that sixty percent of new master-planned communities that broke ground in 2007 included FTTH.

So what’s driving the exploding interest in FTTH? The complete answer can only be arrived at by examining FTTH from the perspective of all the stakeholders within a community: the developer, builder and – most importantly, the resident.

From the developer’s perspective, FTTH is a future-proof infrastructure that enables technology to become a compelling feature that defines a community. By differentiating a community and delivering unique marketing value, a FTTH amenity can accelerate lot sales – something particularly valuable in the current market conditions. Beyond the benefits to a developer’s core business, FTTH also creates an interesting business opportunity where developers can create their own company to deploy and operate the network, or partner with an established system operator. Either way, the business side of FTTH offers a compelling return on investment that is supported by the recurring revenue from residential services and the asset value of the network.

In addition to having primary responsibility for deploying and operating the network, a FTTH System Operator can provide developers numerous advantages versus traditional telecommunications and CATV service providers. Elements of each FTTH system and service offering are customized to each specific community. This provides a range of benefits from an “invisible network” solution that eliminates unsightly pedestals, to delivery of customized services such as community TV channels, WiFi coverage in common areas, security cameras and unique voice/video/data service bundles.

Home builders also share in the benefits provided by FTTH. The enhanced marketing value of a connected community improves foot traffic and potential customers. In addition, home builders can tap into the concept of a “Technology Amenity” to help drive deployment of in-home technology. This leads to improved margins on a per home basis and happier customers. FTTH makes home technology come alive for homeowners and savvy builders leverage this as part of their model home sales process.

With such a natural connection between FTTH and home technology, many FTTH System Operators are also low voltage system integrators. These operators are highly skilled at educating homeowners on FTTH from the moment they step in a model home until they move in their new home. Why is this important to home builders? The NAHB and Consumers Electronics Association report that while more than 80% of builders view in-home technology as a key component of their product, fewer than 2% actively market these solutions. FTTH System Operators are in an excellent position to fill this gap and help builders market and deliver home technology.

The most important stakeholder in a FTTH community is the resident. Every homeowner consumes bandwidth and relies on technology, but few intuitively understand the value of a FTTH community verses traditional solutions. So what are the differences? They include small things like having all services turned on at the time of move-in to having neighborhood “technology consultants” at hand to assist with questions on service offerings, equipment and in-home technology. Content and services are also a priority. Many FTTH systems are able to access over 100 HD channels, which makes watching standard TV as painful as dial-up. In addition to ultra-fast internet access, FTTH systems can offer custom solutions for telecommuters and specialty interests such as internet gaming or international TV programming. Community and home security are priorities for most residents and FTTH can support everything from community-based IP cameras to traditional home security.

With benefits that range from a new business opportunity to creation of a technology amenity that has the power to differentiate a community and satisfy consumer demand for advanced services and technology, FTTH should be evaluated by every developer.