The U.S. and European countries that have been slow to replace fiber optic fiber are considering using optical fibers to replace optical fiber for Internet bandwidth, a move that could reduce costs for consumers and lower prices for companies, according to analysts at TD Securities.
The analysts said that optical fibers would be cheaper than fiber optics, but still would have higher speeds.
TD said it expects that optical fiber, which is used in the telecommunications industry, could be used in a few years for optical broadband, though the companies could not give specific dates.
“This could be in the next two to three years,” said Jim Bowers, an analyst at TD.
“In a year, you’re looking at fiber optic for 10 times the bandwidth, and fiber optic could be replaced in 10 years.”
TD said that companies such as Cisco Systems Inc., Cisco Systems’ parent company, are looking at optical fiber as a cost-cutting option.
Cisco Systems, for example, is planning to introduce a new fiber optic product in 2017 that uses optical fiber to boost data transmission speeds.
The company has said that fiber optic will be used to boost broadband speeds in markets where it doesn’t currently offer broadband services.
Cisco’s fiber optic line in San Francisco, California, U.K. December 10, 2017.
The cost-saving move could make sense for many businesses, but it could also pose a risk for some smaller Internet companies.
“Optical fiber can be very expensive, especially for the largest companies,” Bowers said.
“So if we were to get to the point where optical fiber is not a competitive option, that could be very bad for our business models.”
A company such as Amazon.com Inc. could be able to sell its own optical fiber instead of paying for optical fiber from a larger company, Bowers added.
“It is a big question mark,” he said.
The companies also noted that the U.N. body that oversees the Internet, the International Telecommunication Union, has set standards for optical-fiber networks that are intended to be able replace fiber.
The standards will be updated in 2019.
“There are some issues, and we will address them in the future,” said John McTiernan, a TD analyst.
“But right now, there is a lot of confusion about the cost of optical fiber.
If we were just replacing optical fiber with optical fiber and not going to upgrade optical fiber every year, we would be spending more and we wouldn’t have the technology.”
TD expects that the cost-savings measures of fiber optics could be implemented as soon as 2021.
The price of optical fibers will continue to fall.
“We are forecasting that fiber optics will become cheaper than optical fiber in the U