Fibre plays a major role in backbone networks, not only making it capable of carrying large amounts of traffic but also making it cost-effective. However, the decrease in backbone cost has so far been nullified by an increase in the cost of local loops. Fibre access networks in developing countries like India are set to play a major role in expanding the teledensity. In dense urban areas of India, fibre access is not only the most cost-effective access technology, but is also contributing to building a multiservice network integrating telephony, TV and video-on-demand services.