Next-generation Access (NGA) is a premium networking service which provides higher bandwidth as compared to traditional access options. Unlike traditional networks, Next-generation Networks (NGNs) does not rely entirely on copper wires for connectivity. In NGNs, fiber optic cables and wireless connectivity options are used along with the copper wires to enhance bandwidth. NGA provides more sustainable download speed than traditional network service providers. Currently there are multiple network providers across the globe offering bandwidth up to 100mbps and beyond.
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One of the key drivers of the next-generation access market is increased prevalence of High Definition (HD) screens and projectors along with increased prevalence of high definition media content. There are numerous television and web series that are streamed online in high definition; this increases the need for higher bandwidth. Increased adoption of high definition screens has resulted in increased demand for Fiber to the Home (FTTH) high speed internet connectivity. A large proportion of broadband users in developed countries use FTTH network services to avail high bandwidth; however, there is still a large broadband market to be tapped for next-generation access in developing and underdeveloped countries. Establishing a fiber optic cable network is expensive compared to establishing a copper cable based network. Due to high infrastructure cost, prices of next generation access services are higher than traditional copper based network services. Multiple service providers use copper cables to provide service stations to end user connectivity, limiting the bandwidth of end user connection; FTTH providers on the other hand, provide fiber optic network till the end user, facilitating high bandwidth. In developing countries, FTTH services are offered primarily in densely populated areas such as metro cities. Currently, fourth generation wireless technology is driving the next-generation access market. Developing countries are rapidly adopting 4G technology.
Another major driver for the next-generation access market is increased adoption of cloud based services. Cloud based storage and software solutions require high connection speed in order to quickly access the data saved on the cloud. Increased adoption of IoT is another prominent driver for the next-generation access market. In IoT, every connected device and sensor produces data, creating the need for data storage and data analysis. Cloud solutions are often preferred by IoT users to store and access data. To quickly store and access large amounts of IoT data stored on cloud, users need connections with very high bandwidth. Increased adoption of cloud services and IoT is expected to boost the next-generation access market in the near future.
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Fifth generation wireless technology represents a big opportunity for next-generation access service providers. Multiple telecom companies are investing heavily in research and development to develop a fifth generation wireless technology. Some players have conducted 5G trials in several developed countries and are ready to deploy infrastructure for mass launch of 5G technology in the coming years.
The global next-generation access market can be segmented on the basis of consumer type into two segments, household consumers and business consumers. Business consumers often opt for Fiber to the Premise (FTTP) connection. Companies need very high bandwidth to maintain reasonable download speed for individual internet users as there are multiple users using internet on company premises. Due to increasing affordability of next-generation access services, adoption rate of next-generation access among household consumers is high.
On the basis of industry vertical, the global next-generation access market can be divided into nine segments retail, manufacturing, healthcare, automotive, consumer electronics, energy and mining, transportation and logistics, oil and gas, and others.
Many prominent telecom service providers are offering next-generation access services in different regions. Only few of the telecom providers have strong fiber optic cable network, connecting multiple continents. Some of the key players in the next-generation access market are AT&T, Nippon Telegraph & Telephone Corporation, Deutsche Telekom AG, Vodafone Group plc., Gemalto NV, Aeris Communications, Inc., Telefonica S.A., China Telekom, Softbank Group Corp. and Verizon Wireless.
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