What is GPON and Where Does It Fit?
As telecommunications technology continues to expand, internet bandwidth is becoming more widely available, and more resilient. This is creating a shift in the type of internet enterprise customers are purchasing. As more robust managed service offerings are taking hold, the need for private circuits like MPLS have lessened. Even more recently, there has been a shift to leveraging broadband services from Managed Service Providers (MSPs) like Comcast, Time Warner, Spectrum and others. Traditional ILECs have been left scrambling, not wanting to drastically reduce the revenue they generate from Ethernet. This leaves them exposed to MSP’s offering of cheap internet with strong managed services overlays.
Bring on ILEC Fiber Broadband services (GPON). GPON stands for Gigabit Passive Optical Network. Right now, coverage for these services are limited regionally. Availability is typically found in areas with a high concentration of broadband availability. It is a best effort, symmetrical, fully fiber offering. The major benefit is that speeds for these services are generally much higher than traditional broadband. In some cases, multiple gigabit symmetrical speed is available in comparison to asymmetrical broadband alternatives topping out at about 1 gigabit download and less upload. Also, while both fiber and traditional broadband are best effort, broadband providers have been more willing to oversubscribe their networks as the numbers of residential customers still exceed commercial connections. ILEC GPON services are typically less congested, and therefore actual delivered speeds tend to be higher. These services should be considered equally as viable in delivering low cost connectivity, and in some instances GPON is a welcome alternative.
If you have attempted to renegotiate with your incumbent or source new bids from non-incumbent providers these services may be missing from your offer. While they aren’t new, the footprint for these services is still relatively limited compared to Ethernet. Also, these products are not at the forefront of ILEC offer management and sales rep solutions. They are being used to “save” accounts, or perhaps to attract new customers away from MSPs when Ethernet is not an option. Unless asked for in a strategic requirements letter, carrier reps are still looking to deliver higher revenue Ethernet or get away with a small ‘write down’ to keep customers happy.
Whether you are considering migrating away from an incumbent for a less expensive MSP, or looking to add resiliency and diversity to your primary network, it is important to understand how these alternative products can be leveraged. You may need to apply competitive pressure to ensure MSPs provide their most aggressive pricing. You may be satisfied with your carrier and account team and need additional leverage to go beyond the typical low-ball renewal write-down to reduce costs within your network. Whichever the case may be, G2 will ensure your team is positioned to drive the best solution, at the best cost.