|
|
Although fiber boasts the kind of
broadband speeds that make attention-
grabbing headlines, most small
businesses simply don’t need the kind
of speed that justifies deploying fiber.
In a survey of small businesses
published this fall by the Small
Business Administration (SBA) (nearly
all of the small businesses surveyed
had fewer than 50 employees), most
respondents said their desired
broadband speed is 10 Mbps or less;
less than a fourth of respondents said
|
|
Most small businesses simply don’t need the kind of speed that justifies deploying fiber. |
|
future. Service providers are beginning
to agree with this assessment. As
CBeyond CEO James Geiger put it in a
recent investor conference, “It’s hard
to envision in the next few years that
our small-business customers will need
more than 10 Mbps.”
|
|
|
Figure 1: Ethernet Over Copper Speeds and Reaches
|
|
they wanted 100 Mbps or more.#
Additionally, more than 60% of cable
and DSL subscribers (and nearly 60%
of wireless subscribers) said their
broadband speeds were just fine. The
kinds of real bandwidth needs by SMBs
are an excellent fit for the mid-band
services (typically between 3 Mbps and
20 Mbps) that can be provisioned by
using Ethernet-over-copper.
We don’t see any significant shifts
occurring with respect to SMB
bandwidth requirements over the near
|
|
CBeyond, which targets small businesses with voice and data services, is rolling out Ethernet over copper to 30% to 40% of its base over the next year, saving $20 to $30 per customer over the T1s it typically provisions today and potentially charging customers a little more for the extra bandwidth. As that service is rolled out, the company’s customer acquisition focus will be “heavily weighted” toward its EoCu footprint, Geiger said.
|
|
|
