Danny Goderis, (f)Product Marketing Director, Fixed Access Division (currently Bell Labs Location Leader, Belgium), Alcatel-Lucent and Peter Vanderbeke, FTTU Business Development Manager Vertical Markets Segment, Alcatel-Lucent

The current European fiber to the home (FTTH) market is dominated by citynets, just as the market in the United States was four or five years ago. Although operators such as France Telecom and Telenor are now embarking on their own FTTH deployments — and will have a significant presence in the near term—citynets will remain instrumental.

This article describes the dynamics of citynets based on a study of 20 local FTTH projects. It outlines the main ownership and management models, highlights specific characteristics such as very high initial subscriber take rate, and makes a comparison with the growth of cable television (CATV) networks in the sixties — underlining the nationwide potential of these local networks.

The article also examines the complementary roles of telecom operators and local authorities and utilities. The major investments needed for FTTH are indeed driving operators and municipal utilities to form partnerships, defined by their particular environments (rural, dense urban, etc.). Given their involvement in local civil works, ownership of passive infrastructure (such as ducts), tight relationships with utility companies, and local social housing responsibilities, municipalities are key to guaranteeing, over time, nationwide penetration of FTTH in Europe.

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