A clear and balanced view on FTTH deployment costs

A clear and balanced view on FTTH deployment costs

K. Casier, S. Verbrugge, R. Meersman, D. Colle,

M. Pickavet, P. Demeester

A clear and balanced view on FTTH deployment costs

Step 3

Step 2

Step 1

New infrastructure

Revenues

EVALUATION PROJECT

Current infrastructure

Indirect revenues

Direct revenues

Choice of rollout areas

Users

CapEx OpEx

Costs

Geographic / demographic / economic / legal information

A clear and balanced view on FTTH deployment costs

Step 3

Step 2

Step 1

New infrastructure

Revenues

EVALUATION PROJECT

Current infrastructure

Indirect revenues

Direct revenues

Choice of rollout areas

Users

CapEx OpEx

Costs

Geographic / demographic / economic / legal information

Calculating the costs of a next generation access network

Overview of the costs (Example Pt2MPt, semi urban)

service provisioning

24%

up and running9%

deployment 67%

Zooming in on the CapEx

Step 3

Step 2

Step 1

New infrastructure

Revenues

EVALUATION PROJECT

Current infrastructure

Indirect revenues

Direct revenues

Choice of rollout areas

Users

CapEx OpEx

Costs

Geographic / demographic / economic / legal information

Zooming in on the CapEx

Trenching is extremely costlySo reduce this as much as possible

Central Office Buried drop point Facade drop point Aerial drop point

And reduce the total deployment length

Central Office Fiber cable Buried drop point Facade drop point Aerial drop point

By constructing a Steiner Tree

NP-hard heuristic techniques

Interesting research topicsClustering & cherry pickingRing structures for resilience

Finally there are also different fiber architectures for the access network

fibre pt2mpt fibre pt2pt

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trenching80%

outside plant5%

inside plant15%

Service Provisioning

Up & Running

Deployment

The other parts of the physical deployment have a much smaller impact

Service Provisioning

Up & Running

Deployment

Using an alternative to trenching (here aerial) can save considerable

trenching72%

outside plant5%

inside plant15%

gain8%

Aerial 30% of customers10% of the installation length

Zooming in on the OpEx

Step 3

Step 2

Step 1

New infrastructure

Revenues

EVALUATION PROJECT

Current infrastructure

Indirect revenues

Direct revenues

Choice of rollout areas

Users

CapEx OpEx

Costs

Geographic / demographic / economic / legal information

Zooming in on the OpEx

Zooming in on the OpEx

service provisioning

24%

up and running9%

deployment 67%

Service provisioning takes care of connecting the customer

Service provisioning consists of 4 large parts

12

3

Service Provisioning

Up & Running

Deployment

Especially the equipment consumes a large part of the costs

administrative11%

outdoor15%

indoor10%

equipment64%

Service Provisioning

Up & Running

Deployment

There is a trade-off between pre-installation and later installation

preinstallation12%

later installation24%

equipment64%

Service Provisioning

Up & Running

Deployment

maintenance and repair customer equipment

38%

maintenance and repair inside plant

15%

maintenanceand repair outside plant

6%

operational planning

22%

marketing9%

pricing and billing9%

continuous1%

Finally there is also the OpEx for keeping the network up and running

29

So – We’ve shown an approach forcost breakdown and balanced (zooming) estimation

service provisioning

24%

up and running9%

deployment 67%

Service Provisioning

Up & Running

Deployment

So – We’ve shown an approach forcost breakdown and balanced (zooming) estimation

1. Deployment (70%)

mainly trenching (80%) optimized installation tree cherry picking alternative installation types

Service Provisioning

Up & Running

Deployment

So – We’ve shown an approach forcost breakdown and balanced (zooming) estimation

2. Service Provisioning (25%)

mainly equipment ONU (65%)

advantage of pre-installation reduced trenching early customer binding

Service Provisioning

Up & Running

Deployment

So – We’ve shown an approach forcost breakdown and balanced (zooming) estimation

3. Keep up & running (10%)

mainly maintenance (60%)

In the future we plan to …

Proceed on this approach

Investigate trade-off between CapEx & OpEx Model the cost-structure in more detail Expand this approach to other technologies

(e.g. wireless)

Thank you for your attentionAny questions?

K. Casier, S. Verbrugge, R. Meersman, D. Colle, M. Pickavet, P. Demeester