U.S. Business Fiber Gap Drops to Half

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.

“Fiber footprints have been highly valued assets in nearly every merger transaction in the industry during the past two years. The density of fiber lit buildings on-net and geographic reach are significant competitive differentiators,” said Rosemary Cochran, principal at Vertical Systems Group. “For 2017, network providers report that fiber footprint expansion is the top factor that will drive Carrier Ethernet growth and support rising demand for other gigabit-speed services.”

Comprehensive analysis and quantification of the U.S. Business Fiber landscape is available now exclusively through the @Fiber research track of Vertical Systems Group’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.

Vertical Systems Group’s ENS Research Programs feature web-based access to hundreds of research topics, plus analyst support for your ad hoc requests or consultations. As a comprehensive resource for business or product planning, ENS covers enterprise customer migration across all broadband network services to provide you with more defensible analysis as compared to discrete market forecasts. Research Tracks include @Ethernet, @Access, @Dedicated IP VPNs, @Fiber, @Dynamic Network Connectivity Services, @Private Lines, @Frame Relay, @ATM, @STATFlash, @Insight and more. Contact us for subscription information and pricing, or to schedule an ENS demo.

Vertical Systems Group is recognized worldwide as a leading market research and strategic consulting firm specializing in defensible quantification of the networking industry. For more information see www.verticalsystems.com and follow us on Twitter. To speak to an analyst at Vertical Systems Group, please contact us.