For AT&T, once sustained data consumption per user approaches 250 gigabytes per billing period, FTTH economics get progressively better, since FTTH costs less to continually upgrade for higher speeds.
As always, that assumption is based on AT&T’s total cost structure, the scale of its operations, capital structure and business model. Other internet service providers might have different options, for a longer period of time.
That is especially true for some firms such as T-Mobile and Verizon that have no realistic opportunities to install FTTH nationwide, and whose prospects in the home broadband market are based on use of fixed wireless.
Consumer willingness to pay, plus consumption profiles, do vary quite a lot. So for some, the issue is which segments of the market can be served by wireless, and which require FTTH.
For T-Mobile and Verizon, the issue is how well, and how long, fixed wireless and mobile access platforms can keep growing speeds and capacity fast enough to continue serving half the market.
For cable operators the choices are how long to keep enhancing the HFC platform and when the switch to FTTH makes financial sense.
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