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.