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Clear signs that VoIP is driving demand for fiber May 3, 2013

Posted by Dominic Black in Uncategorized.
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An engaging talk from Kris Barker from BT Wholesale at Convergence North bought up some interesting points regarding the growth of a fiber network in the UK. One point especially came through which was that the relationship between fiber and the growth of SIP trunks and VoIP. Kris mentioned that he believed VoIP was the key product driving the sales of Fiber in the business markKris mentioned Fiber coverage in the UK is increasing rapidly with 54% of business premises having potential of a fiber connection in 2014 compared with 35% in 2013. In the consumer market coverage is also increasing with 64% of homes predicted to be able to receive fiber in 2014, growing from 56% in 2013.

We are already seeing a relationship between VoIP and fiber reach and this increase in coverage is only going to increase the demand for Hosted and SIP as fiber becomes more prevalent. Increased speeds will also help the spread of VoIP as FttP speeds can now achieve 330Mbit/s downstream and 30Mbit/s upstream, facilitating the high bandwidth needed for voice products.

Through one of the many surveys conducted at the summit, the channel audience present perceived the biggest barrier to them selling was a perceived lack of coverage with 54% of those present thinking this was the most pressing concern.

This lack of understanding about the levels of coverage was an interesting, and clearly BT and others need to get the message out to the channel more clearly about the coverage which is now available.

Increased Bandwidth & therefore the deployment of Fiber is a key enabler for channel partners to sell new services (such as VoIP) as well as selling other apps and will be a key enabler in selling new cloud based services.  We therefore expect channels & service providers to get very focused on migrating their bases in the coming year before a competitor takes their customers.

With fiber coverage set to reach 85% the UK by 2015, the possibility for FttP to increase is massive and with the growth of SIP and hosted VoIP driving the demand for fiber the possibilities for channel partners are huge.