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Re: Is Google Fiber a model for Municipal Networks?


From: Jay Ashworth <jra () baylink com>
Date: Sun, 3 Feb 2013 17:03:52 -0500 (EST)

----- Original Message -----
From: "Leo Bicknell" <bicknell () ufp org>

Here's an article with some economics from several different
deployments:
http://fastnetnews.com/fiber-news/175-d/4835-fiber-economics-quick-and-dirty

Looks like $500-$700 in capex per residence is the current gold
standard. Note that the major factor is the take rate; if there are
two providers doing FTTH they are both going to max at about a 50% take
rate. By having one provider, a 70-80% take rate can be driven.

I was seeing 700 to drop, and another 650 to hook up; is that 5-700 supposed
to include an ONT?

Even with us a 4%, 10 year government bond, a muni network could finance
out a $700/prem build for $7.09 per month! Add in some overhead and
there's no reason a muni-network couldn't lease FTTH on a cost recovery
bases to all takers for $10-$12 a month (no Internet or other services
included).

This is the class of numbers I was hoping to get to, yeah.

Cheers,
-- jra
-- 
Jay R. Ashworth                  Baylink                       jra () baylink com
Designer                     The Things I Think                       RFC 2100
Ashworth & Associates     http://baylink.pitas.com         2000 Land Rover DII
St Petersburg FL USA               #natog                      +1 727 647 1274


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