Utilities Look to Capacity Expansion Rather Than New Fiber Builds

September 5, 2007

For More Information
Kristy Weinshel
202.833.6815
kristy.weinshel@utc.org [1]

Utilities Look to Capacity Expansion Rather Than New Fiber Builds

Washington, D.C. – Fiber-optic technology is in widespread use throughout utilities, but utility investment in fiber is focused currently on "capital deepening" rather than expansion of fiber networks. Most utility investments related to fiber are targeting increased Gigabit Ethernet capability and investment in Dense Wave Division Multiplexing (DWDM) on congested routes to increase network capacity and diversity.

UTC's latest research report, The State of Utility Fiber 2007, authored by KEMA Inc. for UTC, finds that utilities are expanding fiber only when partners help them share the costs of buildout, or when transmission-line builds present opportunities to install fiber cost-effectively. Utilities that sell excess fiber also sometimes find customers who can help recover the cost of a build. When fiber is added, utilities typically expand fiber routes and capacity through tradeoff agreements: either fiber for utility right-of-way, or an exchange fiber in utility cable for fiber in the partner's cable.

"Fiber is a critical aspect of utilities' telecommunication plans," said William R. Moroney, President and CEO of the Utilities Telecom Council. "In recent years, the role of fiber has increased dramatically, but also is changing; keeping up with these industry-wide changes is key to managing fiber successfully."

The State of Utility Fiber 2007 analyzes larger fiber technology evolution and market trends including:

Fiber networks and next-generation infrastructures;

Fiber communications for municipal entities;

The role of fiber for network convergence or supplies backhaul for other technologies;

The role of fiber in Broadband over Power Line (BPL), WiMAX and 4G wireless networks;

Fiber and Automated Metering Initiatives, Utility of the Future or Smart Grid Programs including Distribution Automation and Substation Automation; and more.

The State of Utility Fiber 2007 is set for imminent release, and is available to pre-order on the Research portal of the UTC Web site at www.utc.org [2]. For more information, please contact research@utc.org [3] or call 202.833.6828.

Utilities Telecom Council
The Utilities Telecom Council (UTC) is a global trade association dedicated to creating a favorable business, regulatory, and technological environment for entities that own, manage, or provide critical telecommunications systems in support of their core services. Founded in 1948, UTC has evolved into a dynamic organization that represents the broad communications interests of electric, gas, and water utilities; natural gas pipelines; other critical infrastructure entities; and other industry stakeholders.

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