A node is like a mini exchange that converts all the local loop lines into light signals that then travel via fibre optic cable to the nearest exchange.
This reduces the length of copper cabling needed, as all phone lines used to run from the house to the nearest exchange.
FTTN is a stopgap measure really as in the future it will become redundant as more and more bandwidth will be required in each household, and the remaining copper cable to the house, although relatively short, has a maximum bandwidth it can carry, therefore FTTH will be needed sooner or later.
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