FTTH point-to-multipoint vs. point-to-point

FTTH point-to-multipoint vs. point-to-point

A comparison from a microeconomic and macroeconomic perspective

This short study deals with the question which fibre access network topology is most suitable for the FTTH roll-out from a technical, micro- and macroeconomic point of view.

The roll-out of fibre networks in Europe has picked up speed and also in Germany investments into the new infrastructure is increasing. This short study deals with the question which fibre optic topology is more suitable for the development of the FTTH roll-out. We will first examine the technological characteristics of point-to-point and point-to-multipoint topologies. We then consider the investments and costs associated with fibre roll out in the two topologies using the example of Switzerland. Finally we compare the results of this microeconomic perspective against the macroeconomic aspects of an PtP vs. PtMP deployment: While the PtMP expansion is more cost-effective from the single deploying network operator and deployment and thus sales and take-up could be quicker, the PtP topology is technologically more sustainable, more future proof regarding bandwidth and allows for competition via unbundled fibres. Finally, we take a look at the actual deployment strategies of network operators and investors, also looking abroad with a particular focus on Switzerland.