(NPC) - Off Topic, Fiber-optic lines on fast track Options

[Jeff Krieger]

Fiber-Optic lines on fast track

Fri May 30, 7:28 AM ET

Kevin Maney USA TODAY

After more than a decade of promises, the nation's biggest telecommunications companies took a major step Thursday toward building super-fast fiber-optic lines directly to homes.


These lines would carry data 100 times faster than today's cable modems or DSL lines.


Regional phone giants SBC Communications, Verizon Communications and BellSouth announced that they had agreed on standards for so-called fiber-to-the-premises (FTTP) equipment and sent a letter to makers of telecom equipment asking for bids.


FTTP would be ''the most fundamental and important enhancement to telecommunications since wireless networks were built,'' said Matt Davis, analyst at market researcher Yankee Group.


Though broadband will be in about 30% of U.S. households by the end of this year, fiber will drive more dramatic capabilities into homes by delivering lightning-speed Internet, interactive games, movies on demand, phone calls and high-definition TV.


By acting in concert, the phone companies can place massive orders and demand lower prices. Because the three companies have so much clout, the rest of the industry will probably adopt the same standards, creating even greater economies of scale.


As the cost drops, telecom companies will first put fiber into new homes instead of traditional copper lines. So far, fiber lines go into only 37,000 U.S. homes. Trials could begin in next year, said Ken Twist of telecom analyst RHK. Fiber to new homes won't become common until later this decade.


Replacing existing copper lines with fiber will take longer because that requires digging up streets. ''We're not going to wake up one day with the entire network replaced by fiber,'' said Blaik Kirby of consulting group Adventis.


Because it will take so long, consumers shouldn't expect it to affect their broadband prices for years.


A similar move in 1996 jump-started DSL. Four regional Bells agreed on a standard. ''It had a huge changing impact on the market,'' said Danny Briere of analysis firm Telechoice.