2. We’re going to discuss learning from… “ 1 GIGABIT EVERYWHERE” Several million homes passed planned/implemented The business case and strategy for the World’s fastest ubiquitous network - Our own startup operator (rated top 5 in the World for service value by Point Topic) Planning a 20,000 cabinet FTTX deployment with up to $3 billion investment
6. There is no ‘one right approach’ for every country/situation… These choices are considered in isolation and the cost of migration later forgotten FTTC (VDSL2) GPON PTP Typical Speeds >40Mbps <100Mbps <=1Gbps PROS Cheapest solution Cheaper than PTP initially (we’ve seen 5% savings where ducts are widely available to 21%) Saving in central office space Future proof Symmetric services Security for businesses CONS Limited speed Problems of quality of final copper drop Limited opex savings Shared fibre – not seen as secure as PTP Will probably need upgrade in the future Lots of fibre to install Larger central offices required
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8. However take up is not always as high as expected – people don’t just buy technology Source: Ofcom How much more will people pay to double their broadband speed?
9. Getting the scenario right for any deployment is very complex – small changes create huge impacts on results This fictional example inspired by a real case shows different availability & competition scenarios (defined on the left) and resulting peak funding (PFR) and rate of return (IRR) and also takes into account the cross-impacts on mobile broadband