Why FTTR Still Has Few Takers Globally as Operator Trials Highlight Cost and Deployment Barriers

Fiber-to-the-Room (FTTR) has emerged as the latest step in the fiber-to-the-x evolution, promising ultra-reliable, gigabit-class connectivity in every room of the home. Yet despite growing operator trials and early deployments across Europe, the Middle East, and Asia, FTTR adoption remains overwhelmingly concentrated in China. The FTTR technology is still struggling to gain mainstream traction worldwide, GlobalData said in its latest report.

Broadband users in Philippines telecom market
Broadband users in Philippines telecom market

China Dominates FTTR Adoption

The scale gap between China and the rest of the world remains striking. At MWC Shanghai 2025, Huawei estimated roughly 75 million FTTR users in China compared with about 500,000 globally outside China.

According to Yousef Almadani, Senior Analyst for Telecom Technology and Software at GlobalData, the uneven adoption is not due to lack of awareness or vendor support. Instead, it is primarily driven by economics and installation challenges in markets where in-home engineer visits are expensive.

Operators Are Testing FTTR But Deployments Remain Limited

Several telecom operators have conducted FTTR trials or launched early niche services, demonstrating interest in the technology but also reinforcing its limited commercial scale.

Europe trials and early launches

Turk Telekom conducted one of Europe’s first FTTR pilot projects, testing a 50G PON plus FTTR solution.

Vialis (France) introduced FTTR for smart home connectivity in an early deployment.

Telefonica’s Movistar Spain launched FTTR as a premium home connectivity add-on in major cities such as Madrid and Barcelona.

Middle East experimentation

Ooredoo Qatar completed FTTR trials alongside Wi-Fi 7 testing, targeting premium home users.

Zain Kuwait launched FTTR following technical trials and network readiness testing.

Asia pilot programs outside China

True Online Thailand conducted FTTR trials before deploying the technology in residential and hospitality projects.

These examples show that operators worldwide are experimenting with FTTR, but deployments remain small, targeted, and premium-focused.

High Installation Costs Are the Main Barrier

The biggest challenge for FTTR outside China is the cost of installation. Extending fiber into individual rooms typically requires professional installation, including running fiber cables throughout the home and installing optical networking equipment.

In markets where technician labor costs are high, scaling FTTR to millions of households becomes difficult. Operators struggle to justify the investment for a service that only appeals to a small premium segment.

Wi-Fi Mesh and Ethernet Remain Strong Competitors

FTTR also faces competition from solutions that are cheaper, easier to install, and “good enough” for most households.

Key alternatives include:

Wi-Fi mesh systems, which are affordable and self-installable

Ethernet cabling, which is DIY-friendly and supports far more bandwidth than most homes need

Because these technologies meet the needs of most consumers at a fraction of the cost, FTTR often fails to build a strong mass-market business case.

FTTR Positioned as a Premium Add-On

Globally, operators position FTTR as a premium service rather than a mainstream broadband offering. Typical positioning includes:

Bundling with high-tier gigabit packages

Charging monthly recurring fees

Targeting customers seeking seamless whole-home coverage and clean installations

This premium positioning reinforces FTTR’s niche status and limits mass adoption.

Deployment Complexity Slows Expansion

Unlike plug-and-play Wi-Fi systems, FTTR installations can involve:

Running fiber through walls and ceilings

Installing optical equipment in multiple rooms

Scheduling technician visits

This complexity creates friction for both operators and consumers, slowing adoption outside China.

DIY Deployment Could Be the Turning Point

GlobalData believes FTTR’s biggest opportunity lies in simplifying deployment. Future growth could depend on:

Consumer-friendly fiber kits

Easier premises equipment

More DIY-oriented installation models

If the ecosystem evolves in this direction, FTTR could expand beyond early adopters.

FTTR Will Remain a Specialist Offering for Now

Despite growing operator trials and niche launches, FTTR is unlikely to become mainstream globally in the near term. High installation costs, strong competition from Wi-Fi and Ethernet, and deployment complexity continue to limit adoption.

BABURAJAN KIZHAKEDATH

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