Active Ethernet is a point to point technology than connects an Optical Line Terminal (OLT) to remote Optical Network Terminals (ONTs), also known as Optical Network Units (ONUs). An Active Ethernet network has a direct point to point connection from the OLT to the subscriber ONT location. OLTs can be located in remote terminal Fiber-to-the-Node cabinets or central office locations. Active Ethernet uses separate wavelengths to transmit and receive traffic (1490nm from OLT to ONT, and 1310nm from ONT to OLT). Each optical connection provides a dedicated link from the network to the subscriber.

Point-to-Point topologies provide dedicated symmetric connection rates for each residential and business subscriber. These connections provide dedicated bandwidth to the subscriber that is not shared. 

All common networking services are supported on the Active Ethernet point to point network. With the appropriate optical network terminal (ONT), Active Ethernet networks can deploy any residential IP service – Internet access, multicast video, and VoIP.  IP and Ethernet Virtual Private Networks (VPN) services and emulated TDM services (e.g. T1/E1) can be provided for businesses.

Optical Network Terminals (ONT) are installed at the subscriber premises. ONTs terminate the fiber from optical distribution network ODN, synchronize with the Optical Line Terminal (OLT), and transmit and receive all subscriber traffic. Residential ONTs have traditionally been installed on the outside of the home but in recent years the trend has been to install them inside the home. Residential ONTs can be simple demarcation devices that terminate the fiber and present an Ethernet and/or voice ports into the home, or include a home gateway router, multiple Ethernet LAN and voice (POTS) ports which often include Wi-Fi functionality.