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I'm not at all concerned that it won't work - I'm actually surprised that the signal is so strong. I'd be very happy to see such a signal level when I get OR FTTP.
There is a minimum loss of 16.5dB due to the 32-way splitter, so if the OLT is transmitting at 5dBm that only allows 1.5dB for all the splices, connectors, and loss in the length of fibre itself.
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