In 2025, like many professionals in the fiber optic network industry, we began to feel a noticeable chill.

FTTH projects that once grew at high speed are now slowing down. Orders are declining. Budgets are getting tighter. Prices for traditional products keep falling.

But has the market really gone cold?

From what we’ve seen on the ground, the answer may be more complex – and more hopeful – than it seems.

In recent years, Fiber to the Home (FTTH) has been one of the most promising and predictable sectors in Telecommunications infrastructure. However, as we entered 2025, more and more small ISPs and contractors have started expressing similar concerns:

“It feels like there are fewer projects, and clients are slower to place orders.”

“Pricing is getting more competitive, but margins are thinner than ever.”

“We used to talk about network expansion—now clients are talking about cutting budgets.”

This isn’t just an occasional complaint. Across the fiber optic network industry, especially in the supply chain for last-mile passive products, there is a growing and noticeable sense of slowdown.

Are there fewer projects? Yes.
In many countries, broadband coverage is already approaching saturation, particularly in urban areas. Large telecom operators are shifting their priorities from expansion to optimization—for example, upgrading backbone networks or building out 5G backhaul. As a result, new FTTH deployments are being handled with much more caution.

What does this mean for small contractors?

They struggle to secure new access network projects

Existing clients are pausing their previously planned expansion efforts

New projects often come with 40% to 60% budget cuts

Are clients still making demands? Yes—often even more, but with less willingness to spend.
From our conversations with small ISPs and engineering contractors, the feedback is clear:

“Can you deliver faster?”
“Can this solution be 10% cheaper?”
“We don’t have enough staff—do you have something easier to install?”

In short, clients aren’t walking away from projects, they’re simply trying to get the same work done with fewer people and tighter budgets.

The market hasn’t stopped, but the project model has changed.
Between 2021 and 2023, many FTTH deployments followed a centralized construction approach:
Governments released funding, operators signed turnkey packages, and contractors delivered everything at once. These projects often covered thousands of households with tens of kilometers of fiber cable.

Today, smaller ISPs are dealing with a very different situation:

Spot-by-spot expansion (such as filling coverage gaps or reaching rural communities)

Phased implementation (starting with partial coverage and building gradually)

Small-batch orders (typically ranging from 50 to 500 households)

These types of projects often have no fixed templates, operate on tight schedules, and require high flexibility in materials and coordination.

Product quality is no longer the key concern—delivery is.
Many contractors have noticed that while complaints about product quality have decreased, frustration around logistics and installation has grown:

Materials arrive late or in separate shipments

Accessory kits are incomplete, causing delays

Frequent, small-batch delivery is not supported

Product installation is labor-intensive and time-consuming

As a result, even with technically sound products, projects often face setbacks in progress and customer satisfaction.

From the contractor or project manager’s point of view, here’s what we often hear:

“Whoever can deliver everything correctly and on time is the one we want to work with.”
“I don’t mind paying more for better products—I just don’t have time to deal with complications.”
“Pre-terminated solutions? They cost more, but we simply don’t have splicing technicians available anymore.”

This reflects a fundamental shift in the buying logic among small ISPs and contractors. The focus is no longer just about getting the lowest price. It’s about answering the one question that matters most now:
Can you deliver the project reliably, completely, and on time?

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