As the final length of cable into the home or office, VDSL connects to neighborhood Optical Network Units (ONUs), which connect to the central office's main fiber network backbone. This architecture will allow VDSL users to access the maximum bandwidth available through normal phone lines.

VDSL is currently going through a standards issue, so it isn't widely deployed yet. The VDSL alliance favors a line coding scheme based on Discrete Multitone (DMT), a multi-carrier system that is more compatible with existing ADSL technology. The VDSL coalition favors a line coding scheme based on Quadature Amplitude Modulation (QAM), a single-carrier system that is less expensive and consumes less power.

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