Describe the key differences in performance and cost considerations when choosing between a passive optical network (PON) and a point-to-point fiber network.

When choosing between a Passive Optical Network (PON) and a point-to-point fiber network, key differences exist in performance and cost. A PON is a shared fiber network architecture where multiple Optical Network Units (ONUs) at the customer premises share a single optical fiber and Optical Line Terminal (OLT) at the central office. A point-to-point fiber network, conversely, provides a dedicated fiber connection from each customer to the central office. In terms of cost, PONs generally offer lower initial costs due to fiber sharing. The cost of the fiber infrastructure is distributed across multiple subscribers. Fewer OLT ports are needed since one OLT port serves many ONUs through optical splitters, which are passive devices that require no power. Point-to-point networks are more expensive initially because each customer requires a dedicated fiber strand and an OLT port. However, point-to-point networks eliminate the need for optical splitters and the associated equipment costs. Concerning performance, point-to-point networks provide dedicated bandwidth to each user, resulting in higher and more consistent bandwidth availability. Since there is no sharing, the performance for each subscriber is independent of the activity of other subscribers. PONs share bandwidth among multiple users, meaning that the actual bandwidth available to each user can vary depending on the number of active users and the specific PON technology (e.g., GPON, EPON, XGS-PON). During peak usage times, bandwidth contention can occur, reducing the performance for individual subscribers. PONs often utilize Time Division Multiplexing (TDM) or other techniques to allocate bandwidth. Point-to-point networks offer greater scalability. It is easier to increase capacity and upgrade services in a point-to-point network because each user has a dedicated connection. PON upgrades often require replacing or upgrading the OLT and all ONUs on a shared segment. In summary, PONs are more cost-effective for initial deployment where shared bandwidth is acceptable, while point-to-point networks offer superior performance and scalability but come at a higher initial cost. The best choice depends on the specific requirements and budget of the network operator.