Planning to deploy FTTH?
Today many operators are considering deploying FTTH networks to be able to fulfil customers’ demand for bandwidth. FTTH deployments usually start in larger cities with higher demand and population density. MDUs and partial use of existing infrastructure help operators lower the cost of homes passed and homes connected within viable numbers.
But what about the suburbs, rural areas and areas without existing wired infrastructure? We can all agree that fibre is the ultimate solution. But is it also the most efficient? Do countries and operators have enough money to build such expensive infrastructure? Is the timing right? Especially in underserved areas and less developed countries where it is hard to predict the demand and the need for bandwidth might be lower?
Did you know that the average FTTH network penetration rate in EU-28 is only 28%?[1] Even years after the roll-out.
It is not uncommon that the cost of home passed in less populated areas is around EUR 2,000 or even more. If we take an example of EUR 2,000 for the cost of home passed and the penetration rate is 28% than the cost of homes passed per active subscriber is EUR 7,142. To activate the subscriber, we must add fibre drop to the house, in-house cabling and CPE equipment. If we sum up all the costs, we can quickly reach EUR 7,500 to EUR 8.000 per home active. Not to mention all the risks involved and the time it takes to reach even 28% penetration.
There is a good alternative to decrease costs and risks while maintaining all advantages of fixed triple play service portfolio including the delivery of high bandwidth the users need.
Globtel Holding has developed fixed wireless solution that offers the performance of wired networks at a fraction of the cost. The cost of home passed by our system is usually below EUR 100 and the cost of home activated between EUR 300 to EUR 500 depending on circumstances. Even with such low costs the customers can enjoy triple play services and high-speed internet.
In many cases ROI of AIR system is below 3 years which means that the operator can get the return on investment in AIR system even before the wired network buildout would be finished. A potentially effective scenario for operators would be to deploy AIR system first and make instant use of all the advantages it brings.
Our solution enables operators to:
– Easily expand their network foot print
– Cover large areas very quickly
– Offer triple play services just like in wired networks
– Offer high broadband speeds
– Lower the risk of low penetration
– Pay only a fraction of fibre network cost
– Pay as you grow.
One might think that this is contrary to operator’s plan to deploy FTTH networks. But it is not. It is just the question of right timing and what comes first. We are convinced that if an operator deploys AIR system first he gains instant coverage of targeted area and thus first mover advantage. This way operators revenues are immediate and can be used for the build out of the fibre network. There is another important factor that supports this business model. Due to having customers using the AIR System, the operator would have precise insight into a specific areas demand for its services and thus be able to deploy its FTTH network in the most efficient way. Either way, there are usually at least 5% to 10% of users which are the most expensive to connect and some sort of wireless solution might be needed anyway. By using AIR system first operators solve multiple problems easily and at the end AIR system pays for fibre network.
Are you planning your next fibre deployment? Consider how the AIR system can improve your business case.
[1] Data as of September 2016, source: Presentation FTTH Global perspective, Lessons to be learned, CREDO – June, 1st 2017, http://www.cercle-credo.com/docs/evenements/idateftthglobalperspective010617public.pdf
