ADSL2+ isn’t enough then operators must look to VDSL2 and fibre,” adds
Key findings from the new report include:
At present, cabinet-based VDSL technologies are the most
financially-sound option in Western European countries, though payback will
take at least six years Large fibre-to-the-premises (FTTP) builds will not earn a return on
investment (ROI) for at least 15 years, making state-aided builds the only viable model. Operators should follow the lead of France Telecom, however,
and initiate trials to gauge potential demand and usage Telcos must consider losses from not upgrading copper networks, as
well as gains from upgrading them. Cash lost from doing nothing could exceed cumulative negative cash flow from a fibre build after as little as ten years under favourable market conditions This report brings together an assessment of the costs of VDSL and fibre deployments; forecasts consumer bandwidth demand based on the development of services including IPTV, video communication and remote working; and provides ROI scenarios for operators in Western European country markets. Fibre in the Last Mile: the business case for FTTP and VDSL, evaluates the realistic deployment options for each of the DSL and fibre-based technologies that are likely to be used in Western Europe, identifies the options most commercially viable under local circumstances, and quantifies the take-up and revenue per service user needed to achieve an adequate financial return from each technology.