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Forums » FTTH Getting Cheaper » Cost isn't necessarily dropping; marketing price is
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TKJunkMail
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Cost isn't necessarily dropping; marketing price is

»FTTH Getting Cheaper
Broadband stat-farm Point Topic's latest data suggests that globally, the cost of fiber-to-the-home is dropping as its popularity is rising. The average cost of a fiber line per month dropped 12% to around $28.10, according to the company.
The report didn't say cost was going down faster for fiber than for DSL or cable. What they did say was that the price charged customers was dropping. And that is not the same thing. All the report says is that the sellers of DSL and Cable aren't dropping their rates to customers as fast as fiber is. And that can mean that DSL and Cable are just making bigger profits on their services.

»www.point-topic.com/content/dsla···mark.htm
A significant price reduction for FTTx services worldwide

According to the report, FTTx tariffs went down 12 per cent to US$28.1, 3 per cent lower than the average monthly rental for cable modem services.
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tschmidt
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Re: Cost isn't necessarily dropping; marketing price is

Exactly - what providers would prefer is if FTTP install costs go down while service pricing remain constant.

The good news about FTTP is it is capable of delivering tremendous speed. This allows the provider to offer higher speed without having to invest in new first-mile-facilities facilities.

Trunking capacity is only loosely related to speed. Usage drives trunking more then speed. For example downloading the occasional file at 50Mbps is less demanding then watching YouTube all day at 250kbps.

From what I've read Verizon has very aggressive FTTP cost goals and they are meeting most of them. The down side is taking much longer then expected to roll out video triple play service so that revenue is lower then expected. That is probably only a short term set back.

/Tom
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