> The investment per connection of a full fiber access line to the home replacing all copper or coax is between 850 and 1100 Euro (1,143-1,479 USD) in the Netherlands, all-included. The equivalent number in the USA as quoted by Verizon is in the same ballpark per home connected.
> But wouldn’t the investment level of the access line be elevated by the fact that fiber cabling is used? That appears to be not the case. The investment in access infrastructure, i.e., stringing or digging new cables, consists mainly of labor, not materials (exceptional conditions excluded). In dense cities, the bill of materials is as low as 20 percent.
It cost Verizon about $1,000 to pass each house, and $500 to hook up a house that's already passed. But in areas with competition from cable, at best they can hope to get 30-40% of houses they pass to subscribe. So you pass three houses to connect one (3 x $1,000 + $500 = $3,500). And that's for the company that is in many places the wireline incumbent.
> The investment per connection of a full fiber access line to the home replacing all copper or coax is between 850 and 1100 Euro (1,143-1,479 USD) in the Netherlands, all-included. The equivalent number in the USA as quoted by Verizon is in the same ballpark per home connected.
> But wouldn’t the investment level of the access line be elevated by the fact that fiber cabling is used? That appears to be not the case. The investment in access infrastructure, i.e., stringing or digging new cables, consists mainly of labor, not materials (exceptional conditions excluded). In dense cities, the bill of materials is as low as 20 percent.
Also, not having a monopoly makes it expensive: http://www.videonuze.com/article/google-s-fiber-to-the-home-...
It cost Verizon about $1,000 to pass each house, and $500 to hook up a house that's already passed. But in areas with competition from cable, at best they can hope to get 30-40% of houses they pass to subscribe. So you pass three houses to connect one (3 x $1,000 + $500 = $3,500). And that's for the company that is in many places the wireline incumbent.