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Fibre Force Flows Into SME Sector

Posted on 11/12/2013

Fibre broadband is set to become the dominant force in the SME broadband market – the vehicle of choice for bandwidth hungry applications and services. That’s the view of Mark Curtis-Wood from managed services specialist Nimans who says a combination of factors is driving demand.

“Research indicates that global business IP traffic is set to increase by 250% by 2017. This fact, coupled with the increase adoption of cloud based services and bandwidth hungry applications such as Video Conferencing - currently used by about 30% of SME’s in the UK with most businesses expecting to deploy in some form over the next 5 years - mean that the demand for high capacity connectivity is something that no one can afford to ignore,” he explained.

“Fibre is realistically the method of choice due to far higher bandwidth availability coupled with a significant drop in the wholesale price which is also fuelling growth.”

However availability can still be an issue as Fibre To The Cabinet (FTTC) is still not accessible in all areas - although exchanges are being enabled on a daily basis with almost 2,000 already supporting fibre broadband services and estimates indicating  around two thirds will be live by Spring 2014 . A key driver for business adoption is increased awareness in the consumer and residential marketplace, according to Curtis-Wood.

“There’s a lot of marketing going on at the consumer level from some of the big players.  People are becoming more aware of the advantages of having those kinds of speeds and this is driving expectations in the workplace.”

He says understanding the needs of customers is crucial for success. “Open the conversation by asking if they satisfied with their current set-up and identify their future business plans and what other services they are intending to deploy such as video conferencing and VoIP.”

Curtis-Wood concluded: “Fibre broadband can form the basis for a reseller to deploy a greater range of IP-based services such as SIP, Video over IP and hosted services into a customer base that has traditionally been excluded from higher bandwidth solutions due to price and financial commitment pressures.  But fibre broadband is a fraction of the cost of full Ethernet deployment and you don’t have to commit to a three or five year term so the financial advantages are now very compelling.”

eCommerce by: Cohesion Digital