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Deployment strategies for FTTH networks and their impact on the business case: A comparison of case studies

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  • Domingo, Albert
  • Van der Wee, Marlies
  • Verbrugge, Sofie
  • Oliver, Miquel

Abstract

Although it is clear that the evolution of fixed access networks requires the installation of Fiber-to-the-Home (FTTH) to all households, the business case for deploying such networks is very uncertain. It requires significant upfront investment, while not being assured of sufficient timely revenues to cover for it. Although many studies focus on modeling the costs and forecasting the revenues, limited research deals with how both sides can impact the overall business case. This paper compares different deployment strategies used in current FTTH network rollouts, and examines their impact on the overall business case. Deployment strategies are defined as ways to plan the installation of the network and uptake over time, influenced by a variety of situation-dependent characteristics. By studying the different parameters that allow characterizing and grouping ongoing FTTH projects worldwide, we can analyze what drove the choice for the deployment strategy, and how the latter impacts both cost and revenue side of the business case. The paper concludes that deployments driven by demand are less risky and therefore more sustainable. On the other hand, publicly funded or initiated projects obey to different goals than demand and can be unsustainable if they are not able to engage the planned penetration rates.

Suggested Citation

  • Domingo, Albert & Van der Wee, Marlies & Verbrugge, Sofie & Oliver, Miquel, 2014. "Deployment strategies for FTTH networks and their impact on the business case: A comparison of case studies," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106863, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsb14:106863
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    References listed on IDEAS

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    1. Howell, Bronwyn, 2014. "Structural Separation and Technological Diffusion," Working Paper Series 4353, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Howell, Bronwyn, 2014. "Separation anxieties: Structural separation and technological diffusion in nascent fibre networks," 20th ITS Biennial Conference, Rio de Janeiro 2014: The Net and the Internet - Emerging Markets and Policies 106840, International Telecommunications Society (ITS).
    3. Domingo, Albert & Lehr, William, 2013. "Will broadband pricing support 1Gbps services?," 24th European Regional ITS Conference, Florence 2013 88482, International Telecommunications Society (ITS).
    4. Akematsu, Yuji & Shinohara, Sobee & Tsuji, Masatsugu, 2012. "Factors of FTTH deployment in Japan: A panel data analysis," 23rd European Regional ITS Conference, Vienna 2012 60361, International Telecommunications Society (ITS).
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    Cited by:

    1. Rajabiun, Reza & Middleton, Catherine, 2018. "Strategic choice and broadband divergence in the transition to next generation networks: Evidence from Canada and the U.S," Telecommunications Policy, Elsevier, vol. 42(1), pages 37-50.
    2. Beckert, Bernd, 2017. "Success factors for FTTH deployment in Europe: Learning from the Leaders," 28th European Regional ITS Conference, Passau 2017 169449, International Telecommunications Society (ITS).
    3. Gerli, Paolo & Wainwright, David & Whalley, Jason, 2017. "Infrastructure investment on the margins of the market: The role of niche infrastructure providers in the UK," Telecommunications Policy, Elsevier, vol. 41(9), pages 743-756.
    4. Gerli, Paolo & Whalley, Jason, 2016. "Infrastructure investment on the margins of the market: The role of niche infrastructure providers in the UK," 27th European Regional ITS Conference, Cambridge (UK) 2016 148671, International Telecommunications Society (ITS).

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    Keywords

    Fiber-to-the-Home; techno-economics; business case; deployment strategy;
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