Fiber Optics Technology

RSS Author RSS     Views:N/A
Bookmark and Share          Republish
Introduction
Optical fiber technology (FIOS) innovations are currently revolutionizing the way communications in the world is being conducted. Fiber amplifiers have been developed to allow for direct transmission of very high speed signals that can be transmitted over long distances such as from one continent to the other in what has currently come to be known as the optical fiber technology. The technology does not allow for electronic generation but allows only for the signal transmission of wavelengths. Due to sophistication of industries today, the fiber optics technology has become one of the useful technologies in the world. The technology has found new applications in the recent past especially in data processing, device and systems correlation etc. which need speedy publications and performance (Hoover, 2006).

This paper will therefore research the fiber optics technology based on previous studies with reference to Verizon Communication Inc. which is currently overhauling its infrastructure to pave way for the new technology. The paper will examine the basics and any other relevant literature on the fiber optics technology and research if it will have an impact on the market share of the company. It will specifically outline the need for the new technology to help the company maintain its market share which is currently being threatened by other competitors in the sector. It will also predict the success of the company after it has rolled out the technology completely
Methodology/procedures

In order to address the growing issues of teaching strategies for developing leaders for advocating social justice in the society, a survey of the current technologies being utilized will be done. This survey will include previous literature and other studies which will be categorized in a proposed framework for further analysis. The target literature for this research are the service that customers of Verizon will achieve after the implementation of the new fiber optics technology

The researcher will sample material from the company which has already been published to see whether the process of undertaking the new innovation will work,. It will also gather evidence on the developers of the new technology who believe that the technology will take the telecommunications industry further. The researcher sample views from customers of the company to ascertain how they feel about the effectiveness of the new technology, costs and the speed it can offer

History of fiber optics technology
The fiber optics technology was first developed by Narinder Kapany in the year 1956 after coining the term ‘fiber optics' from former experiments on light transmissions. Since then, the technology has developed over the years through a series of experiments in generations that can close to the wavelength of light (David, 2002). The figure below represents the developments of this technology over the years. The top curve which is dashed represents the fiber technology used in the 1980s while the middle curve represents the fiber used in the early 1990s. The lower solid curve represents what the modern FIOS technology is like. As the optical loss increases, the third window band increases especially when it approaches the 2.0 mark of wavelength.

Figure 1. Fiber optics generation

Source; David, R. (2002): A Brief History of Fiber Optic Technology: Fiber Optic reference guide, 3rd edition, Focal Press; Woburn, Massachusetts. p 38
Previous research on benefits of optical fiber technology
The technology has found new applications in many sectors but the main beneficiary is the telecommunications industry. Contrary to what was originally considered to be an expensive technology, fiber optics has transformed the infrastructure of many companies including Verizon which provide broadband services.
The main advantages that fiber technology offers include (David, 2002);
i. Ability to transmit data at very high transmission rates
ii. Offers lower losses
iii. Ability to offer lower error rates
This technology has changed the way businesses are being conducted especially with regard to marketing. More customers in the telecommunications industry are switching from the conventional methods to fiber optics technology because of its convenience. The applications that need to be understood before the implementation of FIOS system include;
i. Fiber memory, switching and signal processing
ii. Fiber local area networks
iii. Modulation format required in the transmission system
iv. Fiber countermeasures and nonlinearities
v. Fiber components, lasers, amplifiers, sensors and other designs
About Verizon communications Inc.
Verizon communications Inc. is one of the largest American broadband and telecommunication company that is a components of the DOW 30 companies in the United States. Verizon founded in 1983 when Bell Atlantic acquired GTE which was by then a large independent local exchange telephone company . Its name originates from veritas and horizon. The company's headquarters is in New York and it offers services such as; broadband internet services, local wire line, wireless telecommunication services, television services etc. As of 2007, the company has a total revenue of $93.22and more than 230,000 employees in throughout the world (Verizon's press release, 2007).

The products and services
The products and services offered by Verizon include; VOIP, data and IP services, internet access security, IT solutions and hosting, managed networks, premises equipment, contact centers, conferencing, voice, solutions e.g. mobility and business continuity, segments e.g. governments, education and wholesale services.
Benefits Verizon's Fiber Optics technology Venture
Verizon communications Inc. is looking into the future with a cutting edge race in mind for the provision of broadband services. As one of the biggest telecommunication giants in the world, the company intends to adopt fiber optics technology to its customers and more amazingly to the homes of its customers. The company is currently testing DSL which are timed with double speeds of the current speed downloads of 3Mbs to 7 Mbs. This means that the company needs to build more optics lines that connect more regions if it needs to meet the market share that some of its competitors in the sector have (David, 2002).
Other companies that have adopted the fiber technology include Comcast and AT&T. Many people see this venture to replace the copper infrastructure as risky and costly but since wireless and broadband technologies cannot replace broadband options; the companies have no option but to go ahead with the implementation of the overhaul. In fact, Verizon estimates that the company will spend not less than $23 billion between the years of 2004 and 2010 on the venture alone when it will complete the change-over. To some extent, the employees of the company including the CEO, Mr. Seidenberg have been subjected to intense pressure to ensure that the company meets its objectives. Their salaries, compensation and other benefits squarely depend on how the company fairs in the fiber optics rollout program (Haley, 2002).
According to Nicholas Hoover of the Information Week, 2006, Verizon Inc sees a bright future in the fiber optic technology and it hopes that the new venture will improve its market share with regard to the number of customers wishing to adopt the technology. In its website, the company confirms that it has spent billions of dollars in laying fiber optic cables in most of the continents and especially in the U.S. The company's new venture that it calls ‘Verizon Integrated Optical Services' plans to deliver high speed network services to large businesses over the same applications.
The VIOS services being taken by the company is required to manage the jumble of Physical layers and integrated protocols that make the corporate networks within the company. The company cites the following issues as the main benefits of the fiber optics technology; business continuity requirements, large file transfers, need for regular upgrades, and voice over IP, legacy systems and storage area networking. The Verizon business department sees optical services as the driver and fiber as the vehicle for the above loads. The company plans to expand the optic fiber technology for both small and large businesses that offer service level agreements and other upload speeds from the technological perspective (Hoover, 2006).
Customer research
Customers in a foreign market are normally sensitive on currency, quality and quantitative figures of countries which the products originate from. Therefore in building a market entry strategy, various issues need to be taken care of; the infrastructure, information and other resources are needed for a start. First, is the development of buildings and other networks that are crucial to the company. Secondly, are the government issues such as licensing, taxing, policies and duty remittances In addition, massive start up campaigns are necessary to reach all the target within a very short time. Transactional costs are crucial to international marketing because there are language barriers, logistic costs; physical distance and other bargaining costs make initial costs very high. Enforcement of contracts and weak legal integration between countries are other factors that need to be assessed before the final arrangements to start the business are made.

Market potential for Verizon
Verizon could be underestimating the market potential because of the fact that more industries are demanding the high speed technology for its delicate services such as the health care sectors, financial sector or even the military. "The more the company becomes aggressive on this issue, the better it is" says Lisa Pierce, the company's marketing manager on the company's website (Verizon's press release, (2007): Verizon Fiber optics Technology. Retrieved from the company's website, www.verizon.com, accessed on 23rd August, 2007).
The company, according to professionals in the telecommunications industry stands to consolidate its market share when it lays out the fiber cable to a majority of its customers. The telecommunication industry is one of the biggest markets in all the sectors of any economy this can be attributed to the way modernization and globalization continues to change people's lives. Since the internet has been adopted as a more convenient method of communication for learning/educational and marketing, every individual would want to have his or her own PC connected to the internet. This demand provokes companies such Verizon to adopt new technologies including this one in order to satisfy that demand.
Convenience
The necessitation for the VIOS technology has been relatively gaining momentum since the time internet services become part of life in almost all parts of the world. This means that telecommunication companies saw the increase in load for internet consumption in the past and needed to do something about it. That something has come to be the fiber optics technology that will enable more users to access the services easily.
The diagram below describes how digital and voice data are increasingly overloading the present application systems (David, 2002).
Figure 2. Increase in relative load

Source; Hoover N. (2006): Verizon Integrated Optical Services; InformationWeek, Texas, O&L Publication's p. 40
Costs of the fiber optic technology
Fiber circuits can be costly in nature and implementation but compared to the conventional access lines, it is cheaper and scabale to the users. The company puts the costs of the services offered by the new technology at a percentage of 20% cheaper than the other conventional ones. In the U.S for example, the company estimates that, " in New York area, a typical 1.5-Mbps T1 line costs about $500 a month, compared with $1,300 a month for a 10-Mbps Optimum Lightpath line" (Verizon Communications Investor Quarterly 4Q , 2006)
According to Verizon's spokeswoman, Ms Sharon, the fiber optics technology is a more powerful service that would enable its customers gets a head start in the communication field. She however acknowledges that the company needs to move from one neighborhood to the other, a task she says is very demanding. The current lowest priced VIOS service that the company wishes to offer will cost about $ 35.99 with a speed download of 5megabites per second which is still very low compared to what other competitors are offering for the same service. The technology could help the company compete with other giants including Comcast Corp. this company is currently a much more fast service than Verizon therefore, Verizon can jump its broadband speed when it likes whenever the fiber optics technology is in place (Haley, 2002)
Marketing strategy
The fiber optics lines are considered a marketing strategy that Verizon employs in order to make itself a company that provides a wide range of services and delivers all sorts of content to its customers which may include; internet services and home entertainment. This marketing strategy helps to put the company in a more sensitive but profitable position in order to meet a market share from most of its competitors. Today as we speak, more and more consumers in this telecommunication sector want to move with new technologies and receive quality services. That is why implementation of this technology can in many ways boost the financial capacity of the company (Verizon Communications Investor Quarterly 4Q, 2006).
Though Comcast's services are more expensive, they are also very fast and that is what Verizon is trying to do; make the services cheaper and at the same time provide quality high speed connections. This strategy will costs the company huge sums of money but will in the long run yield more sales as many customers will be enrolling on the services. The services will be more useful for small businesses and other sectors such as the institutions for research. Customers are always lured away by companies that offer ever-faster services.
The company has in the past developed business models, marketing strategies and new innovations in the telecommunication and broadband operation sector. Its main goals and objectives include:
i. Meeting specific needs for of diverse market for their products
ii. Maintaining economies of scale
iii. Increase production efficiency in almost all its sectors
The company's strategy that is required to meet the core principles of these objectives is to fully exploit the telecommunication industry market through the potential it currently offers (David, 2002). This potential has been noticed as the fiber optics technology for the future. Market and customer operations have for a long time supported the various business groups available in the company. The other horizontal entity that has provided enough support for the company's new technology platforms to be created to allow for the management and driving force for the new products such as the new technology of DSL.
Results
Table 1 was used to assess the degree with which the participants rated the suitability and effectiveness of the new technology in their homes and offices
Table1. effectiveness of the new technology
Response-Percent Number
Efficient 60%
30%
10% N=6
N=3
N=1
Not efficient
No idea

The preceding are the results of the data collected regarding the extent to which the customers felt about the efficiency of the new technology. 60% indicated that they were efficient while another 30% felt that they were not efficient. 10% had no idea.
Table 2 was used to assess the degree with which the participants rated the speed of the connection
Table 2. speed of connectivity
Response-Percent Number
Very good 80%
0%
20% N=8
N=0
N=2
Good
Not the best

The preceding are the results of the data collected regarding the extent to which the speed of the new technology can improve their speed of connection and communication.. The opinion response was 80% for efficient, 0% not efficient and 20% with no idea about the whole thing

Table 3 was used to assess the degree with which the participants rated the costs of the new technology
Table 3. cost of the new technology
Response-Percent Number
costly 100%
0%
0% N=10
N=0
N=0
cheap
No idea

The preceding are the results of the data collected regarding the extent to which the customers felt about the cots of the new technology. A 100% of the participants felt that the new technology was very expensive
Expectations
From the results above, the new technology will not only benefit the company but will also improve the efficiency of communication for the customers of the company. The chances of success therefore will be higher.
Challenges for the company
Today, technologies are becoming more complex and sensitive to specific need of the customers. The telecommunication's infrastructure market will increasingly change and this will negatively and positively affect Verizon as a company in this field. . Customers would like to have services that match with the technology of the day. Introduction of the FIOS, General Packet Radio Service (GPRS), and Global System for communications poses a challenge and equally an opportunity for the Verizon Communications Inc. This company therefore needs to critically use the already available financial advantage to beat its competitors (Hoover, 2006).
The growth and advancement of technology in this sector will affect the way this company will perform in the next three or so years deepening on forces such as;
 Market driven factors-some products are developed without a clear market demand or its need derived from the customers. In the case of FIOS, this was a customer demand driven technology that specifically fits the consumer.
 Continued sophistication of needs of a variety of industries
 Increased divergence in the use of the services such as internet services in mobile phones
The main challenges that Verizon will come through while laying out this technology and that is also what has held back other companies in the telecommunications sector from adopting it include; difficult integration procedures, complicated service offers, confusing pricing strategies etc. The thing that will matter most is the simplication process. The CEO is even quoted in the website as saying that "the simplication process is absolutely necessary and the company must offer uniform pricing and functionality regardless of where the business or customer is located". (Verizon's press release, (2007): Verizon Fiber optics Technology. Retrieved from the company's website, www.verizon.com, accessed on 23rd August, 2007)
Conclusion
For the last few years, Verizon has been able to advance tremendously from the first phase of its implementation. This company therefore has higher chances of success in the next ten or so years if it fully adopts the technology in all its branches around the world. The performance enhancement for the company goes hand in hand with the development of accessible technologies e.g. SDH and other suitable transmissions. In fact, the high rates defined by the fiber optics technology are far from any plateaudological assumptions. The next step that Verizon can undertake is to make improvements in the fiber optics data transmission by greater magnitudes.




References
David, R. (2002): A Brief History of Fiber Optic Technology: Fiber Optic reference guide, 3rd edition, Focal Press; Woburn, Massachusetts. p. 27-40
Haley, C. (2002): Genuity Jilted by Verizon, Mulls Options. Retrieved form www.internet.com, accessed on 23rd August, 2007.
Hoover N. (2006): Verizon Integrated Optical Services; InformationWeek, Texas, O&L Publication's .p. 34-47
Verizon's press release, (2007): Verizon Fiber optics Technology. Retrieved from the company's website, www.verizon.com, accessed on 23rd August, 2007.
Verizon Communications Investor Quarterly 4Q (2006): Verizon Communications and the fiber optics technology venture. The News & Observer. (2) 45-66



Report this article
This article is free for republishing
Source: http://www.articleheaven.net/fiber-optics-technology-1418493.html

Bookmark and Share
Republish



Ask a Question about this Article