Development of a portfolio of services

Written on 2:55 PM by ooe

The biggest barrier associated with deploying FTTH may not be due to technical or cost constraints but due to customer demand. However much the infrastructure and transmission equipment is developed and cost optimised, unless sufficient customers want the services that FTTH can deliver it will not be commercially viable. Most customers are interested only in the services that they have access to and not the network which provides them. As discussed earlier, services such as software delivery and High Definition TV require bandwidths that would greatly stretch the capabilities of most, if not all, technology options except FTTH. To drive FTTH deployment, one or more high bandwidth killer applications need to be developed which will increase the revenue per customer. Until such applications are found FTTH deployment is likely to continue at a more sedate, though no less stoppable, pace.

• The deployment of FTTH is largely constrained by commercial and not technology issues. What is needed is both a reduction in the cost of deployment and an increase in the perceived revenue that may be achieved. Once an acceptable profit margin can be seen the speed of deployment will accelerate. This may fuel further cost reductions associated with volume production which may sustain the acceleration.

• The development of a killer application, for which many customers would be prepared to pay a premium price, could generate a compelling commercial argument for deploying FTTH more quickly and as widespread as operationally possible.

• Even with a concerted commitment, universal deployment of FTTH across the whole of the UK is unlikely to be achieved in less than five to ten years even if it were started tomorrow.

• Current effort of the Broadband Network Engineering Network Modelling team is concentrated on understanding the costs involved and seeking ways to reduce these. Optimisation of the distribution network is seen as crucial for cost per customer reduction. Blown fibre is seen as a key enabler for FTTH.

• Infrastructure cost per customer is highly dependent upon customer take up. This tails off at 50%, so ideally active marketing should be undertaken to achieve take up of at least 50% in most geographical areas. 11