Thursday, 27 November 2008

FTTH economics

Interesting comment piece at Guardian Online about the economics of Fibre-To-The-Home (FTTH) and how it's unlikely to get too much investment in the current financial climate.

Joeri Van Bogaert of the FTTH Council is quoted:
Van Bogaert says that studies in Holland have shown it costs between €750 (£636) and €1,100 to build fibre past a home. The low number is for those in urban areas; the higher one, for those in rural areas. That sounds promising, but you have to remember that that cost (involving digging, pulling fibre and connecting the fibre into the wall of the house) has to be done for every house in a street, regardless of whether those homes sign up to your spiffy new FTTH service or not.
And that's why, despite nobody doubting that faster broadband speeds are a good thing, that it's going to be really difficult to fund it at the moment.

In the UK the cost of a nationwide rollout has been estimated at £15bn.