[CAnet - news] Open Access Fiber Infrastructure makes economic sense for carriers
"Bill St. Arnaud" <[email protected]> Fri, 19 Jun 2009 10:09:25 -0400
| Newsgroups | gmane.culture.publications.news |
|---|---|
| Organization | CANARIE Inc |
| Message-ID | <[email protected]> |
This is a multipart message in MIME format. --===============0945519866== Content-Type: multipart/alternative; boundary="----=_NextPart_000_082E_01C9F0C6.062EA1C0" Content-Language: en-us This is a multipart message in MIME format. ------=_NextPart_000_082E_01C9F0C6.062EA1C0 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit For more information on this item please visit my blog at http://green-broadband.blogspot.com/ or http://billstarnaud.blogspot.com ------------------------------------------- [Benoit Felten, an analyst at Yankee Group has recently published an excellent report on the economics of FTTh, and why an open access infrastructure makes business sense for cariers like that being deployed by KPN in Netherlands (in partnership with RegenFibe and CityNet) , Swisscom and others. He notes in his report that " The business model for fiber to the home (FTTH) is a tough one to make fly. Despite the increasing pressure (competitive and political) for wireline copper operators to upgrade their networks to FTTH, the economics of the business model scare both the telcos themselves and their shareholders or financiers. It's virtually impossible for FTTH to pay for itself in less than five years unless takeup is at least 30 percent, and even then a time frame of seven to eight years is more realistic considering known conditions in most developed markets" This bleak assessment of the business case for FTTH applies not only to carriers but also to municipal fiber builders as well. However M. Felten clearly demonstrates that "Although it might be perceived by most incumbents as going against the grain, opening up a new FTTH network to competitors is actually an efficient way to increase takeup without sacrificing strategic positioning. It has a significant impact on the reduction of the payback as it generates additional revenue from low ARPU but high-margin wholesale customers." I would also add that if the carrier deploys point to point open access fiber infrastructure it opens up new business opportunities such as customer owned fiber (as advocated by Google and others) and bundling cost of fiber and Internet with customer's energy bill, as in the case of Swisscom. For more details please contact Benoit Felten at Yankee Group [email protected] or visit his excellent blog on the subject http://www.fiberevolution.com/ -- BSA] ------------------------------------- To subscribe or unsubscribe send e-mail to [email protected] These news items and comments are mine alone and do not necessarily reflect those of the CANARIE board or management. ------ [email protected] [email protected] http://billstarnaud.blogspot.com/ ------=_NextPart_000_082E_01C9F0C6.062EA1C0 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable <html xmlns:v=3D"urn:schemas-microsoft-com:vml" = xmlns:o=3D"urn:schemas-microsoft-com:office:office" = xmlns:w=3D"urn:schemas-microsoft-com:office:word" = xmlns:m=3D"http://schemas.microsoft.com/office/2004/12/omml" = xmlns=3D"http://www.w3.org/TR/REC-html40"> <head> <meta http-equiv=3DContent-Type content=3D"text/html; = charset=3Dus-ascii"> <meta name=3DGenerator content=3D"Microsoft Word 12 (filtered medium)"> <style> <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4;} @font-face {font-family:Consolas; panose-1:2 11 6 9 2 2 4 3 2 4;} @font-face {font-family:GillSans; panose-1:0 0 0 0 0 0 0 0 0 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; font-size:11.0pt; font-family:"Calibri","sans-serif";} a:link, span.MsoHyperlink {mso-style-priority:99; color:blue; text-decoration:underline;} a:visited, span.MsoHyperlinkFollowed {mso-style-priority:99; color:purple; text-decoration:underline;} p.MsoPlainText, li.MsoPlainText, div.MsoPlainText {mso-style-priority:99; mso-style-link:"Plain Text Char"; margin:0in; margin-bottom:.0001pt; font-size:10.5pt; font-family:Consolas;} span.EmailStyle17 {mso-style-type:personal-compose; font-family:"Calibri","sans-serif"; color:windowtext;} p.Default, li.Default, div.Default {mso-style-name:Default; margin:0in; margin-bottom:.0001pt; text-autospace:none; font-size:12.0pt; font-family:"GillSans","sans-serif"; color:black;} span.PlainTextChar {mso-style-name:"Plain Text Char"; mso-style-priority:99; mso-style-link:"Plain Text"; font-family:Consolas;} .MsoChpDefault {mso-style-type:export-only;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.Section1 {page:Section1;} --> </style> <!--[if gte mso 9]><xml> <o:shapedefaults v:ext=3D"edit" spidmax=3D"1026" /> </xml><![endif]--><!--[if gte mso 9]><xml> <o:shapelayout v:ext=3D"edit"> <o:idmap v:ext=3D"edit" data=3D"1" /> </o:shapelayout></xml><![endif]--> </head> <body lang=3DEN-US link=3Dblue vlink=3Dpurple> <div class=3DSection1> <p class=3DMsoPlainText>For more information on this item please visit = my blog at <o:p></o:p></p> <p class=3DMsoPlainText><a = href=3D"http://green-broadband.blogspot.com/">http://green-broadband.blog= spot.com/</a> or <a = href=3D"http://billstarnaud.blogspot.com">http://billstarnaud.blogspot.co= m</a><o:p></o:p></p> <p = class=3DMsoPlainText>-------------------------------------------<o:p></o:= p></p> <p class=3DMsoPlainText><o:p> </o:p></p> <p class=3DMsoPlainText> <o:p></o:p></p> <p class=3DDefault> [Benoit Felten, an analyst at Yankee Group has = recently published an excellent report on the economics of FTTh, and why an open access infrastructure makes business sense for cariers like that being deployed = by KPN in Netherlands (in partnership with RegenFibe and CityNet) , Swisscom = and others. <o:p></o:p></p> <p class=3DDefault><o:p> </o:p></p> <p class=3DDefault> He notes in his report that “ The = business model for fiber to the home (FTTH) is a tough one to make fly. Despite the = increasing pressure (competitive and political) for wireline copper operators to = upgrade their networks to FTTH, the economics of the business model scare both = the telcos themselves and their shareholders or financiers… = It’s virtually impossible for FTTH to pay for itself in less than five years = unless takeup is at least 30 percent, and even then a time frame of seven to = eight years is more realistic considering known conditions in most developed = markets” This bleak assessment of the business case for FTTH applies not only to carriers but also to municipal fiber builders as well. = <o:p></o:p></p> <p class=3DDefault><o:p> </o:p></p> <p class=3DDefault>However M. Felten clearly demonstrates that = “Although it might be perceived by most incumbents as going against the grain, = opening up a new FTTH network to competitors is actually an efficient way to increase = takeup without sacrificing strategic positioning. It has a significant impact = on the reduction of the payback as it generates additional revenue from low = ARPU but high-margin wholesale customers.” <o:p></o:p></p> <p class=3DDefault><o:p> </o:p></p> <p class=3DDefault>I would also add that if the carrier deploys point to = point open access fiber infrastructure it opens up new business opportunities such = as customer owned fiber (as advocated by Google and others) and bundling = cost of fiber and Internet with customer’s energy bill, as in the = case of Swisscom. For more details please contact Benoit Felten at Yankee = Group <a href=3D"mailto:[email protected]">[email protected]</a> or = visit his excellent blog on the subject <a = href=3D"http://www.fiberevolution.com/">http://www.fiberevolution.com/</a= > -- BSA]<span = style=3D'font-family:"Calibri","sans-serif";color:windowtext'><o:p></o:p>= </span></p> <p class=3DMsoNormal><o:p> </o:p></p> <p class=3DMsoPlainText> = <o:p></o:p></p> <p class=3DMsoPlainText><o:p> </o:p></p> <p class=3DMsoPlainText><o:p> </o:p></p> <p class=3DMsoPlainText><o:p> </o:p></p> <p = class=3DMsoPlainText>-------------------------------------<o:p></o:p></p>= <p class=3DMsoPlainText>To subscribe or unsubscribe send e-mail to <a href=3D"mailto:[email protected]">[email protected]</a><o= :p></o:p></p> <p class=3DMsoPlainText><o:p> </o:p></p> <p class=3DMsoPlainText>These news items and comments are mine alone and = do not necessarily reflect those of the CANARIE board or = management.<o:p></o:p></p> <p class=3DMsoPlainText><o:p> </o:p></p> <p class=3DMsoPlainText><o:p> </o:p></p> <p class=3DMsoNormal><o:p> </o:p></p> <p class=3DMsoNormal><o:p> </o:p></p> <p class=3DMsoNormal>------<o:p></o:p></p> <p class=3DMsoNormal>[email protected]<o:p></o:p></p> <p class=3DMsoNormal>[email protected]<o:p></o:p></p> <p class=3DMsoNormal>http://billstarnaud.blogspot.com/<o:p></o:p></p> <p class=3DMsoNormal><o:p> </o:p></p> </div> </body> </html> ------=_NextPart_000_082E_01C9F0C6.062EA1C0-- --===============0945519866== Content-Type: text/plain; charset="us-ascii" MIME-Version: 1.0 Content-Transfer-Encoding: 7bit Content-Disposition: inline _______________________________________________ news mailing list [email protected] http://lists.canarie.ca/mailman/listinfo/news --===============0945519866==--