Today, while having a chat with a friend of mine about the poor broadband services that we enjoy here in Spain and the lack of investment coming from the operators, we did an exercise to calculate how much it would cost to deploy FTTH everywhere. Big numbers.
Spain has a population of around 45 million people (you can check this at wikipedia) so the number of houses will be between 10 and 15 million. Let’s be negative and suppose that in Spain there are 15 million places to connect.
Roughly, deployment costs of 1000EUR per home can be good top price. Doing basic maths, with 15.000M EUR we would be able to offer FTTH services everywhere in Spain.
Obviously, deployment costs will be higher in rural areas but at the same time, many population live in condominium buildings and there, deployment costs will be below 1000EUR per connection.
Actually, I would say that 15.000M EUR is a very high price, taking into account that for massive FTTH deployments cost per subscriber can be easily below 600EUR. Also, using existing civil infrastructure from the incumbent, which by the way has been paid by all the Spaniards, means that this cost could decrease even more.
This means that with between 10.000M and 15.000M EUR all Spaniards could enjoy of FTTH.
I know that this post is a little bit demagogic, but I believe, that instead of spending 8.000M EURs in useless projects under the FEIL framework, the government could invest a little bit more and change the economic model of Spain…
For the readers outside Spain, the FEIL framework was developed to reduce unemployment in Spain by offering money to the municipalities to develop projects, mainly civil ones. In practice, what they did was to use this money to repair streets and build basic civil infrastructures… No IT.
This is very disappointing because if the government just spends money (increasing the government debt) to reduce unemployment just in the short term but without encouraging the development of new economic models, Spain will drop from the EU top countries list.
In broadband, we are already back in the list…