Costing Example for Fibre Installation

Example from "Cabling Connection Magazine"
October /November 2004 page 50.

1000 homes in Perth cost $23 million or $23,000 based on one single fibre FTTH

If 9% cost of capitol is agreed, then each home would pay $2070 per year to break even.

If the user pays $600 per year @ 100% penetration the network would not be viable.

Cost breakdown for installation of single fibre buried underground for this example is

Labour 60%
splicing 25%
Material 15%

This example is based on a single fibre entry to the home, the material is the least cost component in this example,
yet it is the most important part of the installation.

No comparison is given for the old copper pairs it replaces yet labour and splicing would cost about the same,
terminating might cost more for copper as there are more pairs and joins in copper.

Take up rate of services could be forced by a similar method used for Analogue TV to Digital TV with a lead time date for the change over time - say 5 years as an example.

No new services on copper after this date and the services will be cut to one emergency telephone on copper.

The Australian Internet Grid service will cost more per year but the service take up will very high with the choice in services and bandwidth offered.

Australian Internet Grid

This proposal can be estimated once the rest of the proposal is released in Draft version 5, people will dig their own lead in cable entry trench to their home once they see what it has to offer, this trench work will only have to be done once for all the future services.

The ability to move house without the hassle of getting the new home connected for services is worth a whole lot more than anyone can imagine as everyone has a horror story to tell, small business and large business will appreciate this one advantage.

This information and graphics are my work, I expect the viewer to respect this work.

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