STATFlash: U.S. Business Fiber Gap Drops to Half

As fiber-lit building penetration increases to 49.6% in 2016

BOSTON, MA, APRIL 19, 2017 – The U.S. Fiber Gap continued to narrow in 2016 as business fiber penetration in commercial buildings grew to 49.6%, according to latest research from Vertical Systems Group. This annual benchmark figure quantifies fiber-lit multi-tenant and company-owned buildings in the U.S. with twenty or more employees. The Fiber Gap, which refers to the remaining commercial buildings with no access to optical fiber facilities, has progressively dropped to 50.4% in 2016, down from nearly 90% in 2004.

Active optical fiber is the most widely deployed access technology for the delivery of Carrier Ethernet services in the U.S. Fiber access is also preferred by service providers and business customers for higher speed dedicated connectivity to the Internet, Cloud services, Data Centers, Hybrid VPNs, and emerging SDN-enabled services.

ā€œFiber footprints have been highly valued assets in nearly every merger transaction in the industry during the past two years. TheĀ densityĀ of fiber lit buildings on-net andĀ geographic reach are significant competitive differentiators,ā€ said Rosemary Cochran, principal at Vertical Systems Group. “For 2017, networkĀ providers reportĀ that fiber footprint expansion is theĀ top factor that willĀ drive Carrier Ethernet growth and support rising demand for otherĀ gigabit-speedĀ services.”

Comprehensive analysis and quantification of the U.S. Business Fiber landscapeĀ is available now exclusively through the @Fiber research track of Vertical Systems Groupā€™s ENS (Emerging Networks Service). Research content covers a full update for 2016 plus historical data for the period 2004 through 2016. Research Topics cover an analysis of current U.S. fiber trends, fiber penetration rates by customer segment (Large Enterprise and SMB) and detailed statistics on fiber penetration and the Fiber Gap for four building size segments (20-50 employees, 51-100 employees, 101-250 employees, >250 employees). Contact us for ENS Research Program subscription information and pricing.