One argument for open access fiber-to-home networks is that such networks enable competition while also requiring less capital investment in multiple networks. And there is at least some evidence that open access networks reach payback a bit faster than single ISP-owned facilities.
For example, a sampling of ISP FTTH networks that are not operated on an open access basis suggest payback in competitive markets between seven and 15 years, with payback happening faster with higher take rates.
Network | Country/Region | Market Competition | Capital Investment | Payback Period | Penetration Rate |
Google Fiber (Kansas City) | USA (Kansas City) | Competing with Cable & DSL | $94 million | 7-9 years | 30-40% |
Orange FTTH (France) | France | Competing with Free and SFR | $4 billion (nationwide) | 10-12 years | 25-35% |
BT Openreach FTTH | United Kingdom | Competing with Virgin Media | £12 billion | 12-14 years | 20-30% |
Verizon Fios (NYC) | USA (New York City) | Competing with Spectrum & Altice | $23 billion (total Fios) | 9-11 years | 35-45% |
TDC FTTH (Denmark) | Denmark | Competing with Fiberby and Waoo | €500 million | 10-12 years | 20-30% |
Bell Canada FTTH | Canada | Competing with Rogers | $1.5 billion | 8-10 years | 25-35% |
Chorus FTTH (New Zealand) | New Zealand | Competing with Vodafone NZ | NZ$3 billion | 10-11 years | 30-40% |
T-Mobile Fiber (Germany) | Germany | Competing with Vodafone & O2 | €2 billion | 12-15 years | 15-25% |
But some open-access networks get payback in seven to 18 years. The point is that it is not always clear open-access networks reach payback faster than ISP proprietary networks.
Network | Country | Network Type | Capital Investment | Payback Period |
Ammon Fiber Optic Network | USA (Idaho) | Municipal Fiber Network | $3.5 million | 16-18 years |
Stockholm’s Stokab Network | Sweden | City-Owned Fiber Network | $300 million | 8-10 years |
Utopia Fiber (Utah) | USA (Utah) | Open Access Fiber | $200 million (Phase 1) | 12-14 years |
NGA Initiative (UK) | United Kingdom | Public-Private Partnership | £1.7 billion | 10-15 years |
Nuenen (NL) Fiber Network | Netherlands | Rural Fiber Network | €8 million | 7-8 years |
Lunet | France | Rural Municipal Network | €2.5 million | 10-12 years |
No comments:
Post a Comment