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$40 Billion To Wire the UK With FTTH
And British Telecom wants to invest $3 billion. Maybe.
A new study by the Broadband Stakeholder Group offers this interesting statistical tidbit: it would cost UK broadband operators £28.8 billion ($40.9 billion) to wire every home in the UK with fiber to the home. It would cost £5.1 billion ($7.2 billion) if the country wanted to run FTTN (likely VDSL2) to every UK home. For some context, Verizon is spending roughly $24 billion to wire less than half of their footprint with Verizon FiOS FTTH service, and AT&T is spending around $6 billion to deploy U-Verse VDSL service. Back in July, British incumbent British Telecom announced they might be willing to spend about $3 billion on network upgrades, if they receive the proper regulatory back rubs from the British government.
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bgraham2
join:2001-03-15
Smithtown, NY

1 edit

bgraham2

Member

I Think Utilities are Underground.

I left the UK many years ago, but go back regularly. If I remember correctly all utilities are buried under ground. This must make it very difficult to upgrade a complete network. Unlike here in the USA where they just run fiber along poles and poke another hole in the side of the house.

Also homes are almost exclusively brick or block construction. Another difficulty when running wires inside homes.

SLD
Premium Member
join:2002-04-17
San Francisco, CA

SLD

Premium Member

Re: I Think Utilities are Underground.

Conduit?
TheMG
Premium Member
join:2007-09-04
Canada

TheMG

Premium Member

Re: I Think Utilities are Underground.

Bingo! Just slide the cables in!

Anonymous_
Anonymous
Premium Member
join:2004-06-21
127.0.0.1

Anonymous_ to bgraham2

Premium Member

to bgraham2
said by bgraham2:

I left the UK many years ago, but go back regularly. If I remember correctly all utilities are buried under ground. This must make it very difficult to upgrade a complete network. Unlike here in the USA where they just run fiber along poles and poke another hole in the side of the house.

Also homes are almost exclusively brick or block construction. Another difficulty when running wires inside homes.
not true some places have underground

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Deployment costs urban vs rural very interesting

The report actually develops some deployment costs of urban vs rural environments. Summarized, the really rural costs are approx 4.5x as expensive as urban costs. This adds some facts to the arguments about urban vs rural fiber deployment costs.

This chart shows how different areas are characterized by population density and length of runs from the POPs:



This chart shows the cost in British Pounds of what it costs to deploy FTTH to the different areas:



Both charts are found in the full report found here:
»www.broadbanduk.org/comp ··· emid,63/

Urban deployment at today's exchange rate is about $690/household.
Rural deployment is about $3000/household.

NetAdmin1
CCNA
join:2008-05-22

NetAdmin1

Member

Re: Deployment costs urban vs rural very interesting

said by FFH5:

Urban deployment at today's exchange rate is about $690/household.
Rural deployment is about $3000/household.
Both are amounts that could easily be recouped in a five to ten year time frame, ergo, no real good reason not to deploy, unless you consider the whiny investors with the casino-mentality about the market a good reason. I'm pretty sure no CEO or President wants to hear them complaining constantly about how the sky is falling because their short term gains are down a couple of points.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Re: Deployment costs urban vs rural very interesting

said by NetAdmin1:
said by FFH5:

Urban deployment at today's exchange rate is about $690/household.
Rural deployment is about $3000/household.
Both are amounts that could easily be recouped in a five to ten year time frame, ergo, no real good reason not to deploy, unless you consider the whiny investors with the casino-mentality about the market a good reason. I'm pretty sure no CEO or President wants to hear them complaining constantly about how the sky is falling because their short term gains are down a couple of points.
Without the "whiny" investors, the companies wouldn't have any money to fund improvements. Somehow a company has to provide returns to investors while also doing upgrades. That is why these large scale improvement projects are spread over many years and not done in shorter timeframes as technology lovers and special interest groups desire.

NetAdmin1
CCNA
join:2008-05-22

NetAdmin1

Member

Re: Deployment costs urban vs rural very interesting

said by FFH5:

Without the "whiny" investors, the companies wouldn't have any money to fund improvements.
You misread my statement. "Whiny investors with the casino-mentality," you know, the morons who invest very short term, and freak when one quarter's results come up short of estimates. These folks are very different from long term investors in that they refuse to acknowledge the big picture, demand that company's reinvest as little as possible and consider short terms gains more important than long term stability and sustainable business plans.

Long term investors with a clue welcome reinvestment in a company and are willing to take short term hits in returns for long term growth.

S_engineer
Premium Member
join:2007-05-16
Chicago, IL

S_engineer

Premium Member

Re: Deployment costs urban vs rural very interesting

The problem is, they're all buying chips (stock) from the same house. That makes the long term investor more likely to dump the stock with the wild price fluctations. It then becomes a self-fulfilling prophecy on why not to invest!

You'd almost need a long term bond issue/that carries a high yield, but even that would need the stability of its common stock.

NormanS
I gave her time to steal my mind away
MVM
join:2001-02-14
San Jose, CA
TP-Link TD-8616
Asus RT-AC66U B1
Netgear FR114P

NormanS to NetAdmin1

MVM

to NetAdmin1
said by NetAdmin1:

Both are amounts that could easily be recouped in a five to ten year time frame, ergo, no real good reason not to deploy...
You will need two things that we don't have:

• Investors with a long term mentality (which, of course, you are denigrating).

• A government with a long term mentality; which means no taxes on the revenues collected for the FTTH services until after the payoff. Can you see government not touching those revenues for five to ten years? I can't.

Oh, and one other thing: Both the cableco and the telco will be expected to build out; but you can't expect the homeowner to use both, so some of the homes won't be paying off for the build out.

NetAdmin1
CCNA
join:2008-05-22

NetAdmin1

Member

Re: Deployment costs urban vs rural very interesting

said by NormanS:

Investors with a long term mentality (which, of course, you are denigrating).
I disagree with the parenthetical portion that statement. On the contrary, I was denigrating short-term investors who play the market like the horse races or the roulette wheel. Re-read my posts and you will see that I state that long term investors are what allow companies to invest back into themselves and promote continued growth and stability. Short term investors force companies to do the exact opposite by forcing them to focus on immediate returns and punishing companies that don't maximize immediate returns by delaying or avoiding reinvestment.

NormanS
I gave her time to steal my mind away
MVM
join:2001-02-14
San Jose, CA

1 edit

NormanS

MVM

Re: Deployment costs urban vs rural very interesting

Of course. I knew what you meant, but I'm a "Muslim", after all! (Obama's slip of the tongue will actually embarrass the right, you know!)
pb2k
join:2005-05-30
Calgary, AB

pb2k

Member

The currency coversions are wrong

umm, GBP £28.8 billion dosn't equal US$40.9 Billion.
TheMG
Premium Member
join:2007-09-04
Canada

TheMG

Premium Member

Re: The currency coversions are wrong

Lol it almost looks like they did the conversion from EUR->USD instead of GBP->USD

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5 to pb2k

Premium Member

to pb2k
said by pb2k:

umm, GBP £28.8 billion dosn't equal US$40.9 Billion.
The correct conversion would be £28.8 billion to US$50.7 billion

Dspairl
Premium Member
join:2004-06-09
Norwich, CT

Dspairl

Premium Member

Re: The currency coversions are wrong

$50.9B now =)

chronoss20081
Premium Member
join:2008-03-29

chronoss20081

Premium Member

why bother if no one wants it

now go sue all the gamers and pirates you can find and see what and how many want highspeed afterwards

XBL2009
------
join:2001-01-03
Chicago, IL

XBL2009

Member

Re: why bother if no one wants it

said by chronoss20081:

now go sue all the gamers and pirates you can find and see what and how many want highspeed afterwards
People would flock to 100mbps if they could get it.

Froggy
@bell.ca

Froggy

Anon

$40 Billion To Wire the UK With FTTH

Canada is spending nothing.

hayabusa3303
Over 200 mph
Premium Member
join:2005-06-29
Florence, SC

hayabusa3303

Premium Member

Re: $40 Billion To Wire the UK With FTTH

said by Froggy :

Canada is spending nothing.
Hell, nor is At&t, qwest, only one is verzion and that footprint is small plus a hit or miss muni around.

XBL2009
------
join:2001-01-03
Chicago, IL

XBL2009

Member

Just do it !

The cost to wire homes with fiber will just keep going up every year and they are eventually going to have to do it.

Just do it.
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

small country, many options.

sure, fiber should be the bulk of telecom infrastructure for both cable and telco providers. however, in a small country such as the uk, wireless broadband could easily cover much of the country with a comparably lower price tag.. so in places where infrastructure is not practical, wireless broadband via wimax or something similar can flood the area with coverage.

also, not all the uk's infrastructure is underground.. if you go onto any web map program and check out street views along highways... they have above ground poles as in other places as well as buried infrastructure. don't think that just because of wwii that the uk buries everything.. they don't, it's just not practical everywhere!
madcowusa
join:2005-03-09
Port Orchard, WA

madcowusa

Member

Seems like a fair cost

considering what the UK has already spent in wiring for CCTV/network cameras every few hundred feet of motorway and in every obscure village and town center. Kinda freaked me out when I was there last month.