& cplSiteName &
Comments
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
pdecker
50%
50%
pdecker,
User Rank: Light Beer
8/27/2013 | 12:51:21 PM
consumer perspective
"Competition in most broadband markets is intense and consumers know faster services are being introduced by many players."


As a consumer, I don't feel that this is really the case. It's a duopoly at best if I want television programming delivered in addition to internet, at least in the 3 big cities I've lived in in the past 5 years, reinforced when you compare tv-only to double or triple play pricing.  I would hardly call the competition "intense" nor the number of players "many".
Duh!
50%
50%
Duh!,
User Rank: Blogger
8/27/2013 | 11:29:53 AM
Re: When does the FTTH opex savings kick in?
FTTH provides lots of places to save OPEX.  Biggest savings do come from decommissioning the copper.  Fiber requires significantly less routine maintenance and has longer MTBF than copper, especially in aging distribution plant.  New fiber plant is going to have better record keeping and less deterioration of cross boxes, etc., so more reliability and shorter MTTR.   And don't forget the recovery value of scrap copper, which presumably would end up on the balance sheet as revenue.

Also in an apples-to-apples comparison of FTTH vs FTTN/FTTC, don't forget OPEX for powering VRADs, including energy cost plus the associated costs of maintaining batteries, chargers, and utility connections.  And  incremental OPEX associated with VRAD maintenance and logistics.

I'm not privy to Verizon's financial analysis, but have heard (third or fourth hand) that there were supposed to be significant OPEX savings even before scrapping out the copper plant.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
8/27/2013 | 10:05:21 AM
Re: When does the FTTH opex savings kick in?
That was what I was getting at - Verizon makes the argument that they don't benefit from their fiber investment while being forced to maintain copper. Of course, decommissioning copper precludes competition on that platform, including for small business customers. 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
8/27/2013 | 9:56:25 AM
Re: When does the FTTH opex savings kick in?
Judging from Verizon's actions, once fiber is in place they'd prefer to decommission copper. That doesn't mean fiber opex is lower, but one opex is better than two.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
8/27/2013 | 9:45:57 AM
Re: When does the FTTH opex savings kick in?
Thanks, that makes sense.

Do they reap even bigger rewards when they start decommissioning the copper - or is that the small stuff?
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
8/27/2013 | 9:43:47 AM
Re: When does the FTTH opex savings kick in?
Carol,

Having spent a lot of time with Verizon on FiOS let me give you the info that I have.  The savings for them started almost immediately.  The reason for that was that they were able to reclassify union positions in the new network.  This enabled a smaller, more flexible work force.  The unions HATE FiOS.

seven

 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
8/27/2013 | 9:10:48 AM
When does the FTTH opex savings kick in?
Do companies such as Verizon, which made a huge FTTH commitment, have to completely retire its copper network to get the full opex savings of fiber, or does that savings come incrementally?

 


Featured Video
Upcoming Live Events
September 17-19, 2019, Dallas, Texas
October 1-2, 2019, New Orleans, Louisiana
October 10, 2019, New York, New York
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events