In EPON, this high cost
is taken from the network operator and assumed by the subscriber, thus providing a
powerful, inherent advantage to EPON deployments when competing with xDSL or
HFC network operators.
Evolving Service Models and Revenue-Stream Replacement
The current transition in telecommunications and cable services from narrow-band
telephony and broadcast television to VoIP and video-on-demand and the emergence of
new (or newly independent) players in broadband access, including, in particular, the
entertainment industry, is rapidly driving existing service models and the underpinning
networks into obsolescence. As income from payphones, traditional landline voice
services, leased-line business services, and so on, erode, and as the price of Internet
access declines, service providers are under enormous pressure to find new revenue
streams. The focus has shifted naturally to advanced television and video services,
which, as a class, will consume perhaps two orders of magnitude more sustained and
dedicated bandwidth per customer, when compared to traditional services. Given that
we do not yet know the point at which bandwidth demand will stop increasing, the
strategic risks associated with deploying new xDSL or HFC access networks are apparent.
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