This discussion paper examines to what extent the spatial footprint of network operators influence the cost of FTTH deployment. Using examples of generically defined network operator types, it demonstrates that costs per connection can vary considerably depending on the size and structure of supply areas, as well as the number of customers. Methodologically, it compares constellations of local or regional monopolists with current FTTH availability and contracted FTTH lines. The study demonstrates that market conditions such as infrastructure competition, low contracting rates, and a lack of wholesale services can override the intuitive result: Backhaul costs can be higher than expected in urban areas in particular, while rural regions remain structurally disadvantaged despite their lower density. The report supplements model-based analysis with practical insights from expert interviews, demonstrating why wholesale offers and project-related expansion decisions are key factors in achieving profitable and comprehensive FTTH deployment.
Backhauling in the context of competitive FTTH rollout (No. 548)
Significance of footprint for backhaul costs – a model-based analysis
To what extent does the spatial footprint of network operators influence the cost of FTTH deployment? A model-based, bottom-up analysis shows that costs per connection can vary considerably depending on the size and location of supply areas, and the number of customers.
