In a PON setup,the system is considered passive because no repeaters or other devices intervene between the carrier and the customer.

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A PON (Passive Optical Network) system is composed of a central optical line terminal (OLT) at the service provider's facility and a number of optical network units (ONUs) or optical network terminals (ONTs) near end-users. The system is considered passive because it uses splitters to divide the signal among multiple users without amplification, so no repeaters or other active devices are needed between the carrier and the customer.

In a PON Setup,the System Is Considered Passive Because No