Deploying Germany-wide FTTH network costs EUR 120 bln??

Telecompaper published a report from WIK Germany comparing the cost of deploying different access technologies in Germany to offer high-speed access in the entire country.

They calculate that the cost of deploying a FTTH network to give access to the entire Germany is 120bln EUR, while the cost of deploying VDSL is around 40bln EUR…

I have been unable to read the entire report but my first reaction is that those costs are highly overestimated… for several reasons:

  • Germany has a population of 82 million people and assuming 4 people per home leads to aroung 20 million homes. we suppose that 25% of the families have more than one house, so we have 23 million homes, rough numbers. The study concludes, then that cost per home in Germany is 5.200 EUR per home, so similar to Australia…
  • They are chosing FTTH P2P. Why not take into account PON solutions? PON technologies  require much less fiber so are more cost-effective than P2P approaches.
  • What about OPEX? OPEX costs of FTTH network are much lower than active VDSL approaches. FTTH power requirements are lower and the maintenance of a passive outside plant is much cheaper.

I will not say that the methodology is inaccurate because I have been unable to review the entire  report yet… I will spend the entire weekend analysing it because now it is just available in German, but I promise that next week I will present a deeper analysis and I will apologise in case I missed something when I wrote my first opinion.


4 thoughts on “Deploying Germany-wide FTTH network costs EUR 120 bln??

  1. Broadband in Germany is painful. The government states that broadband is available everywhere due to them being reliant upon satellite based access, which is poor at best based on the “Astra2Connect” service. VDSL in Germany is there, but once again painfully slow. Given that the German market is dominated to T-Com and the German government does nothing at all to break this monopoly, then even deploying simple 2MB DSL to homes is never going to happen. So thinking that Germany might one day deploy FTTH makes me chuckle. The country is overloaded with rules and regulations. I have just recently moved to Germany from The Netherlands. I feel like I’ve gone 10-15 yrs back in time. I previously had DSL from BT when it was first deployed and that is better than the DSL service I currently get from T-com. So as I value your report and look forward to reading your comments, I’m very much of the mind that it will still take 20 yrs for Germany to get its act together. Pessimistic perhaps, but they simply have no interest as the government has given them the get out clause of internet access via a satellite.

  2. The cost estimates for the USA are approximately $7,750 per unique household based on averages. The methodologies are fairly straightforward. At present exchange rates, that equates to 5,688 Euros – or pretty close to the estimates in the German FTTH broadband report.

    Obviously, in some places, the cost is much lower as running the fiber is easier. In others, like old cities with severe right of way issues, the cost is higher.

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