NBN Co tied up in fibre knots

This means is that the reduction in infrastructure maintenance costs if FTTP is rolled out will be about $35 per connection per year by 2021.

Now if we start in 2015 and add $30 per year for maintenance with $10 for power and increase by inflation over twelve years the result is about $584. So by about 2027 the extra cost of rolling out FTTP would be repaid in full including interest using the maintenance and power savings alone and from this point forward there would be an annual saving of about $40 per connection in current dollars.

And this simple analysis does not include the FTTN cabinet batteries ($3000 per cabinet), the higher cost of FTTN equipment, the cost of dealing with water ingress which will have an even greater effect on VDSL2 with vectoring than it has on ADSL2+, the cost of upgrading the HFC to DOCSIS 3.1 in five years, the cost of upgrading the FTTN to G.Fast in five years and so on.

NBN Co’s claim, reported by ZDNet, that the $120 million operating cost to power the 60,000 FTTN cabinets across Australia each year will be less than the up-front capital cost of rolling out FTTP is meaningless as there are many other costs to take into account.

This is a well written piece, definitely worth a look.

via NBN Co tied up in fibre knots | Business Spectator.

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