How Does it Work?
A Fiber Optic cable is run underneath your home to a box outside your house through which a Cat5 cable is then run into. Here’s the chain of what happens in a fiber optic connection when you try to access a website.
Your computer sends a signal through the Cat5e cable or Wirelessly to your router which then pings the server in question somewhere out in the world. When the router goes to ping the website you requested, rather than sending an electrical signal out through a copper wire, a transmitter sends out information as a beam of light which can be filtered through the fiber optic cable and then multiplexed when it reaches the larger “community" wire.
Simply put, beams of light act as the electrical signals that were originally used to access the Internet. The same way electrical signals can be used to represent binary code and ping requests, so too can light be transmitted in bursts to the same effect.
The end result is a high-fidelty, high-bandwidth connection that can be transmitted commercially and sold at a bargain once the technology to install this type of wire commercially is made cheaper.
Overall, FiOS looks to be the future of the Internet connection and a bright future at that. As our internet speeds go up, so too does our ability to download and stream files over the internet. Perhaps Microsoft's pipe dream of 1080p streaming on the Xbox 360 isn't as far away as one would've originally thought.