It is understood that Optical fiber will be the main building block for future high capacity home broadband networks due to the fact that its transmission capacity is almost unlimited compared to existing copper cabling systems.

Fiber to the Home (FTTH) networks, where the optical fibers run directly into the customers’ home, are enjoying considerable growth in many parts of the world. This is mainly due to the steep rise in demand by private households for greater network bandwidths so as to use novel applications such as fast Internet access or high-definition television.
Services such as Voice communication, broadband internet facility and IPTv are generally offered by an FTTH provider over a single line.

FTTH in Pakistan:

When it comes to the deployment of Optical Fiber networks in Pakistan, we have four major commercial long-haul optical fiber networks in PTCL, Wateen Telecom, Multinet and Mobilink spread across the length and breadth of Pakistan. Wateen and PTCL have also invested in metro ring networks for large cities.

Here, the cost of an optical fiber network is generally on the higher side which makes the cost of using FTTH services for the end user also higher. Nayatel (in Islamabad and Rawalpindi) has deployed its own fiber based metro optical ring network and is providing FTTH services to the household customer as well as corporate customers.

With Nayatel being the first operator in South Asia to offer FTTH services, the cost of having it deployed at your home it still very high for the average broadband customer used to paying roughly PKR 1200 per month for a 1MB+ DSL package.
While the home user has to pay a monthly rent which is roughly the same as one would pay for an average DSL service, upfront installation charges for the home users stand at PKR 3000 and you also have to purchase an Alcatel manufactured ONT (Optical Network Terminal) worth approximately PKR 25,000 to be able to use the FTTH services (Voice/Data or Video).

We know PTCL is also working on the same lines and is planning to launch its own FTTH network for which preparations are already under way. Wateen and CyberNet also have some plans in place.

Overcoming the Cost Challenge for the End User:

Nayatel has been doing good business and has put forth an excellent business model for others to follow but the upfront cost for the customer still remains a huge challenge. A major part of this can be blamed on the choice of the ONT vendor, Alcatel, whose equipment costs significantly higher than other ONT manufacturers in the market.

Although Nayatel has come up with an option to pay this amount in installments, for any customer, it is more or less the same. You still have to pay quite a lot of money in a market where DSL connections are easily available and cheap.

Enhancing network efficiency through effective planning, administration and documentation, choice of a reliable and reasonably priced ONT vendor and a well thought-out and carefully crafted marketing plan can really boost FTTH sales and encourage other major players in the market to enter this domain.

With Pakistan already touching approximately 10,000 FTTH users in price-heavy conditions, I think the future for FTTH services in Pakistan is bright!