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
FP
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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