TITLE

Is Fiber To The Home Affordable?

AUTHOR(S)
Weingarten, Michael; Stuck, Bart
PUB. DATE
June 2004
SOURCE
Business Communications Review;Jun2004, Vol. 34 Issue 6, p24
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
In reaching its decision, the U.S. Federal Communications Commission (FCC) relied heavily on a study conducted by the Cambridge Strategic Management Group (CSMG). The Commission had based its decision on a finding that fiber-to-the-home (FTTH) deployment--which might be described as the ultimate broadband network is economically viable for both incumbent and competitive carriers, but only under free market conditions. The passive optical network modeled in this study is broadly similar to the FTTH request for proposal issued by the regional Bell operating companies in 2003. Many of CSMG's modeling assumptions were accessible in an FCC filing, so people have undertaken to reverse-engineer CSMG's model for a sample central office located in Amarillo, Texas. Feeder fiber represents 33 percent of the total Amarillo capex. Given that incumbent local exchange carriers (ICEL) have already CSMG did not specifically study the economics of competitive local exchange carrier (CLEC) FTTH deployment. All voice and data revenue can be considered incremental and build costs could be lower due to the use of lower-cost contract labor. Based on CSMG/Corning submissions, the FCC decided that CLECs had equally good entry economics for FTTH deployment.
ACCESSION #
13409097

 

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