Outlines the national perspective and includes costs for deploying FTTH. The costs were put together for the FCC staff using real life numbers from Minnesota and Wisconsin, with the assistance of Finley Engineering, Hiawatha and Jaguar.
4. U.S. FTTP Service Providers FTTP Technology by Number of Companies Source: Broadband Properties, November 2009 Nov. 2009 Nov. 2008
5. FCC Estimates on Broadband Table from FCC September Commission Meeting, September 29, 2009 Capability of Estimated Commercial Deployments Housing Units Requiring Upgrade to Reach Each Tier Incremental Cost to Universal Availability of These Advertised Speeds (Best Estimate) .768-3 Mbps 3-6 Million $20 Billion 3-10 Mbps 7-10 Million $35 Billion 10-30 Mbps 33-37 Million $50 Billion 100+ Mbps 111-116 Million $350 Billion
6. FTTH Costs: Passing & Serving Homes Backbone / Central Office Passing Homes Serving Homes Sources: CSMG, Hiawatha Broadband, Jaguar, Finley Engineering Factors that increase the FTTH investment required include: lower household density, greater linear distance between households, fewer homes per CO, higher service uptake, more buried plant Passive Optical Splitters Central Office (CO) Data Ethernet Switch Internet OLT EDFA IT / OSS / BSS Drop Set-top Box Phone ONT Data RF Video Only Service Provider Cost to Pass Per HU Incremental Cost per HU HU Density Verizon $700 $650 >100’s /sq. mile Jaguar (Rural Minnesota) $1438 $693 28.53 /sq. mile Finley Engineering Case Studies (w/Hiawatha BB) $1871 $750 14.33 /route mile
7. Verizon’s Cost Per Home Served Actual cost per home served at a 30% take rate for 1000 homes: $700 X 1,000 = $700,000 to pass 1,000 homes $650 X 300 = $195,000 to serve 300 homes $895,000/300=$2,983 per home served 30% Take Rate 50% Take Rate 100% Take Rate Cost per Home Passed $700 $700 $700 Incremental Cost per Home Served $650 $650 $650 Actual Cost per Home Served $2983 $2050 $1350
8. Rural FTTH Cost Per Home Passed Costs based on average of nine FTTH projects in the midwest. Verizon’s incremental cost per home served is $100 per home less. But Verizon’s take rates are much less. Higher costs in rural areas are partly offset by rural operators’ higher penetration rates 30% Take Rate 50% Take Rate 100% Take Rate Cost per Home Passed $1655 $1655 $1655 Incremental Cost per Home Served $722 $722 $722 Actual Cost per Home Served $6238 $4032 $2377
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12. Is the U.S. Population Clustered? Source: US Census Bureau
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16. Jaguar Cost Per Home Passed Housing Units per Square Mile $1438 Over half of the housing units are located in town, lowering the average cost to service the area by over $664 per home (28 HU per sq. mile=$2102)
17. $206 Billion to Fiber U.S. Sources: US Census Bureau Data, Render Vanderslice, CSMG cost model Largely Unoccupied <1 HU/sq. m Very Low Density 1-5 HU Rural Non-Metro Rural Metro Urban Non-Metro Pop. 2500+ Urban Metro Non-Metro Total 22,543,000 345,000 2,256,000 10,691,000 n/a 9,251,000 n/a Metro Total 106,467,000 n/a n/a n/a 13,779,000 n/a 92,688,000 Fiber Passed Today 0 0 500,000 Included in rural non-metro 500,000 17,000,000 Future FTTH Homes 0 0 10,191,000 13,779,000 8,751,000 75,688,000 Cost Model n/a n/a Worst Case 6 HU/sq m $3840 Worst Case 6 HU/sq m $3840 Verizon Costs Verizon Costs Cost n/a n/a $39.1 B $52.9 B $11.8 B $102.1 B