Huawei's Xu Zhijun Forecasts Rapid Growth in FTTH Penetration Rate in Coming Years

Huawei's rotating chairman, Xu Zhijun, recently spoke about the future of the global broadband industry at the 2022 Tianyi Digital Technology Ecological Conference. In his speech, he highlighted the progress made in the industry in recent years, moving beyond traditional copper broadband and into the era of gigabit fiber broadband.

One key point that Xu Zhijun made was the expected growth of the fiber-to-the-home (FTTH) penetration rate in the coming years. He stated that the FTTH rate is expected to reach 8% in 2025 and 31% in 2030. This indicates a significant increase in the adoption of fiber-optic technology for broadband connections in homes and businesses around the world.

The growth of the FTTH rate is likely to be driven by a number of factors, including the increasing demand for high-speed internet and the need for reliable connections. As more and more devices become connected to the internet and the reliance on internet-based services increases, the need for faster and more reliable broadband connections will also rise.

In addition to the growing demand for high-speed internet, the advancement of technology is also likely to contribute to the increase in the FTTH rate. As fiber-optic technology continues to improve and become more widely available, it is likely that more people will choose to switch to fiber-based broadband connections.

Xu Zhijun emphasized the changing nature of broadband consumption demand, both for home users and businesses. He noted that the digital home business is experiencing rapid growth, with the concept of a "digital home" becoming more prevalent. This shift is leading to a change in the way that homes are positioned, with a focus on immersive experiences, online office capabilities, and whole-house intelligence.

As a result of these changes, the consumption upgrade of home broadband services is creating higher demands on the broadband network in various dimensions, including coverage, speed, delay, and the number of concurrent connections. In order to meet these increased demands, it is necessary for the industry to continue innovating and developing new technologies and solutions.

In addition to the changes in the home broadband market, Xu Zhijun also noted that the business broadband market is experiencing similar shifts. Businesses are increasingly relying on the internet and digital technologies, leading to a need for more reliable and high-speed broadband connections. As such, the upgrade of broadband consumption is becoming increasingly important for both home users and businesses.

According to Xu Zhijun, fiber-to-the-home (FTTH) bandwidth has undergone significant upgrades in recent years, with the transition from Gigabit to 10 Gigabit. This upgrade allows more users to experience ultra-fast broadband speeds, and operators are working on upgrading their networks to 10G PON to support this transition.

As of November, the number of Gigabit users in China exceeded 87 million, accounting for 16% of all broadband users in the country. This trend is expected to continue as more people adopt fiber-based broadband connections, and the industry is already looking towards the next stage of development, with 50G PON set to be commercialized in 2023. This will further promote the innovative development of home digital services and drive the upgrade of broadband networks from Gigabit to 10 Gigabit.

In addition to the growth and innovation in the fiber-to-the-home (FTTH) market, Huawei's rotating chairman, Xu Zhijun, also highlighted the potential for fiber-to-the-room (FTTR) technology to reach every family in need. He stated that the goal is to make Gigabit Wi-Fi experience ubiquitous in the family room, covering every place where users may need to consume broadband networks. By doing so, the idea of "Gigabit home easy, 100M Difficulty entering the house" will become a thing of the past.

The adoption of FTTR not only improves the home experience for users, but it also opens up new business growth opportunities for operators. It allows operators to enter a new era of experience management, rather than just bandwidth management. According to current plans, the penetration rate of FTTR is expected to reach 8% in 2025 and 31% in 2030.

Xu Zhijun also emphasized the importance of upgrading to Wi-Fi 6 technology in order to improve the broadband experience for users. He stated that from the perspective of users, the broadband experience is largely dependent on the quality of the Wi-Fi connection. Wi-Fi 6 is particularly important in this regard, as it is key to providing a ubiquitous gigabit experience.

New applications, such as virtual reality and online gaming, have higher and higher requirements for throughput and delay, and the popularity of these applications is expected to continue increasing. In order to meet these demands and allow every user to access Wi-Fi 6 anywhere in the home, it is necessary to upgrade to this technology.

n his speech, Xu Zhijun also highlighted Huawei's commitment to driving innovation and development in the digital technology industry. He stated that the company has always followed the principle of pressured investment, focusing on the communications and cloud computing sectors and maintaining strong investment in research and development.

Through this approach, Huawei has been able to promote the growth of the digital technology industry and provide a wide range of innovative products and services to its customers. The company's focus on R&D and innovation has allowed it to stay at the forefront of the industry, and it is likely to continue playing a leading role in the development of new technologies and solutions in the future.

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