How Much Does Rural Fiber Really Cost?

George L. Fendler, owner of Central Coast Internet in Hollister, Calif., has a problem. He wants to illustrate the “cost differences between fixed wireless and fiber installations in a rural environment.”

The problem is that “I don't really know what the cost per mile is for a fiber installation,” says Fendler. Lots of people would say that’s a very good question. 

How much does it really cost a local telco to build fiber to home plant in rural areas? The answer, of course, is “it depends.” But a 2011 study of rural telco costs for fiber to home build shows that cost is directly related to potential customer density, measured as “locations per plant mile.”

Broadly speaking, when a telco can pass five to 65 locations for every mile of outside plant, the cost per home cost per home  ranges between $4,000 and $5,000 per location. When the number of locations drops below five passings per plant mile, costs escalate quickly, up to $19,000 a location.