Mar 7, 2025
Building a future-ready FTTH network requires a shift from outdated performance metrics to a strategy focused on full coverage, dense deployment, and efficient installation. This article highlights the benefits of high port penetration rates, short-distance access, and pre-connected FAT solutions to minimize costs and enhance service reliability. By implementing these principles, operators can significantly reduce installation expenses and improve network scalability.
1. Reevaluating Two Critical Performance Metrics
Port Utilization Rate
Traditionally, operators have assessed port utilization rate too rigidly. Requiring a high utilization rate immediately after project completion leads to thin coverage, long-distance access, repeated construction, and wasted resources.
A more realistic approach is recognizing that an FTTH project typically achieves a 30% port utilization rate within three years after acceptance. In large-scale FTTH rollouts, achieving 50% utilization after five years is already a significant accomplishment. Some operators mandate utilization rates of 70% or higher in the early phases, which is often unrealistic and disruptive during large-scale expansion.
Port-to-Household Penetration Rate
Port-to-household penetration refers to how many fiber optic ports are installed relative to the total number of households in a given area.
If operators focus too much on minimizing initial investment costs, they may install too few ports during the first phase of construction. However, labor costs account for 60% of FTTH deployment costs, while fiber optic cables make up 25%, and splitters and materials comprise just 15%.
A low penetration rate leads to frequent repeat construction within 1-2 years, requiring similar labor costs each time. Compared to a one-time comprehensive installation, repeated deployments triple the overall investment.
Recommendation: Aim for a port-to-household penetration rate of at least 70% during the initial construction phase.
2. The Strategy: Full Coverage, Dense Coverage, Short-Distance Access, Easy Connection
Full Coverage: The Key to Efficient Planning
For small to mid-sized cities, a single, comprehensive FTTH plan is the most effective approach. Instead of phased, fragmented deployments, operators should ensure continuous, full-area coverage wherever possible.
For traditional fixed-line operators, this is especially important to facilitate migrating legacy xDSL users to FTTH.
Comprehensive coverage enables strong brand positioning and a positive word-of-mouth effect. In contrast, spotty coverage frustrates consumers and invites competition from rivals filling in the gaps.
Dense Coverage: Maximizing Investment Efficiency
Dense coverage means targeting a 60% or higher port-to-household penetration rate to ensure optimal investment efficiency.
Optimized capital investment
Shorter construction timelinesHigher network qualityStronger market confidence
Port density serves as an indicator of long-term network growth capacity, ensuring infrastructure supports development for at least five years rather than chasing immediate, unsustainable utilization rates.
Short-Distance Access: Boosting Installation Efficiency
To maximize efficiency, operators should:Use 8-port FATs in medium-density residential areasUse 4-port or 2-port FATs for sparsely populated areasEnsure FAT-to-home distances remain between 30-80 meters
Shorter access distances increase installation efficiency, lower operational costs, and enhance user experience by reducing service failures.
Easy Connection: Faster Installation, Quicker Repairs
By using pre-connected FAT solutions, operators can:Eliminate in-air fiber splicingReduce fault rates from poor connectionsEnable fast replacement of faulty FATs
This ensures rapid installation and quick troubleshooting, boosting network reliability and customer satisfaction.
3. The Pitfalls of "Thin Coverage & Long-Distance Access"
How Thin Coverage Leads to Costly Rework
One of the biggest pitfalls in FTTH deployment is thin coverage, which leads to wasteful second-phase construction.
Example: If the first installation covers only a small portion of households, new demand will require a second phase of construction within 1-2 years.
Impact: A two-phase deployment costs nearly twice as much as a single, comprehensive installation. Some operators undergo three, four, or even five reworks, causing severe capital waste.
How Long-Distance Access Increases Installation Costs
Scenario: Suppose only one FAT is deployed in an area, forcing subscribers to connect over long distances.
Problem 1: As more users sign up, connections become longer and more complex, increasing costs.Problem 2: When a second FAT is added, previously connected users cannot be easily switched, forcing inefficient routing.
Solution: Deploy both FATs upfront to prevent long-distance access issues and high installation costs.
Key Takeaway:
The best way to evaluate FTTH network quality is to measure how many broadband connections a technician can install per day.
Recommendation: Keep splitter-to-home distances below 100 meters to ensure cost-effective and efficient network growth.
Conclusion
Operators must move beyond outdated utilization metrics and focus on long-term network efficiency. A strategic FTTH deployment requires:
Full coverage to reduce rework and boost brand reputationDense coverage to optimize investment and sustain long-term growthShort access distances to improve installation efficiencyEasy connection methods for seamless service activation and maintenance
By avoiding repeated construction cycles, operators can reduce costs, accelerate growth, and build future-ready fiber networks.