But, he also writes that an issue here could be that the Australian government 
has a monopoly on the NBN and so market pressures to upgrade to FttH might not 
exist ..


“FttH business model is gaining strength” by Paul Budde

Tuesday, July 12th, 2016 
http://www.buddeblog.com.au/frompaulsdesk/ftth-business-model-is-gaining-strength


The message I am getting from talks with some of the European telcos is that 
many of them who began to implement FttN solutions a decade or so ago now see 
that a profitable business model for a full FttH network is within reach. 

The uptake of higher-speed packages is steadily increasing. In general terms, 
where they still operate ADSL and HFC networks they will move straight to FttH 
– FttN is no longer on the agenda.

While FttN and HFC are still performing well they can see the need for 
upgrading – perhaps in 3-5 years’ time, but most certainly within 10 years. 
This also fits in with their investment models. Most of the FttN models were 
based on a 15-20 year investment plan and a return on their FttN investments 
can be reached within this timeframe.

What does this mean for Australia? 

Obviously we are running quite a few years behind the European and American 
FttN cycles and it is unlikely that we will be able to catch up with them in 
the next 10 years, because we don’t even have our initial FttN networks in 
place. Their European, American and several Asian counterparts will be well and 
truly underway with their full fibre networks by the time Australia has 
completed its FttN rollout.

However, this also brings me back to earlier comments made during the FttN vs 
FttH debate. 

A key point here was that if we are determined to roll out FttN we need to have 
a plan in place that will bring us to the next phase of full fibre deployment.

Based on the overseas comments it is now clear that it is economically viable 
(ie, profitable) to move from FttN to FttH. 

An issue here could be that the Australian government has a monopoly on the NBN 
and so market pressures to upgrade to FttH might not exist, or might be 
hampered in our country.

So with the reality of the MtM network for Australia we will now have to 
concentrate on how to best migrate from FttN to FttH; but once again, because 
this is a government monopoly, such a migration will not simply be driven by 
market forces.

Paul Budde


Sent from Mail for Windows 10

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