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Author Topic: Openreach FTTP – Final 10% of UK Likely to Cost £4000 Per Premises  (Read 580 times)

Bowdon

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https://www.ispreview.co.uk/index.php/2019/08/openreach-fttp-final-10-of-uk-likely-to-cost-4000-per-premises.html

Quote
The CEO of BT Group, Philip Jansen, has revealed how Openreach anticipates that reaching the final 10% of UK premises with 1Gbps capable Fibre-to-the-Premises (FTTP) broadband ISP technology is likely to require an “outlay of around £4,000 each to pass” (vs build costs of £300-£400 for the first 50% of premises).

It is good news that they are figuring out the financial numbers to put in to reality a full fibre Britain. This along side their cost cutting efforts shows they are really serious. I don't think I've seen a company dynamically change as much as we're seeing BT/OR do at the moment.

But I do have a question that as me puzzled about the layout and costs of full fibre.

A month ago I had ordered FTTPoD and eventually I got the final figure back of £8,935 +vat. This was out of my price range. But when I got the report back via Cerberus from OR, I noticed I got a reduction in the price due to 12 properties potentially being connected to the fibre network. My property was one of the 12. I got a £50 reduction off the price per property (12 x £50 = £600. Also in that reduction they include a £700 reduction for the actual FTTPoD order, so it came to £1,300).

But what as me confused about this arrangement is that in order to get to my pole they would have passed 3 other poles. Where is the financial logic to pass a pole and not put the fibre node on there? If each pole had 12 properties attached to it then including my pole that is 48 people that could potentially get a full fibre connection. At £50 per property multiplied by 48, and with the £700 added for the FTTPoD order, I would have got a reduction of £3,100. So my bill adjusted would have been £7,135 +vat. That would have been a £1800 reduction. I would have paid less, another 36 people would have had access to full fibre, and I'm sure there would have been an over all reduction in work costs i.e. doing it all at one time vs coming out 4 times for each pole.

So how much extra work would it have been for them to have connected each pole up along the way vs going straight past it to reach my pole?
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j0hn

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Re: Openreach FTTP – Final 10% of UK Likely to Cost £4000 Per Premises
« Reply #1 on: August 05, 2019, 12:53:30 PM »

Quote
But what as me confused about this arrangement is that in order to get to my pole they would have passed 3 other poles. Where is the financial logic to pass a pole and not put the fibre node on there? If each pole had 12 properties attached to it then including my pole that is 48 people that could potentially get a full fibre connection. At £50 per property multiplied by 48, and with the £700 added for the FTTPoD order, I would have got a reduction of £3,100. So my bill adjusted would have been £7,135 +vat. That would have been a £1800 reduction. I would have paid less, another 36 people would have had access to full fibre, and I'm sure there would have been an over all reduction in work costs i.e. doing it all at one time vs coming out 4 times for each pole.

So how much extra work would it have been for them to have connected each pole up along the way vs going straight past it to reach my pole?

The logic is that in some cases they might pass 50 poles, or 50 underground Distribution Points.

It would be very time consuming and expensive to enable every single property passed between the Agg Node and the person ordering.
If they did that there would then be people asking why they stopped at your pole.
Why not keep going and do the next 10 poles seeing as you're in that street anyway.

OpenReach "passing" every property on the way to you wouldn't have reduced the cost.
They wouldn't simply deduct £50 for each property bringing the price down.
The cost of Labour/Stores/Civils would likely increase dramatically more than any small reduction from each premises passed.
It would take many more hours/days of Labour and lots more hardware (more Splitter Nodes and CBT's).

The old FTTPoD system only enabled the person who ordered.
The new system enables everyone on the same DP.
I think they struck the right balance.

FTTPoD diverts man power away from other areas.
They are attempting to cover millions of properties with the Fibre First rollout.

I'm not sure I'd want to pay for the rollout of FTTP for every single property along my fibre path anyway.
« Last Edit: August 05, 2019, 12:57:12 PM by j0hn »
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CarlT

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Re: Openreach FTTP – Final 10% of UK Likely to Cost £4000 Per Premises
« Reply #2 on: August 05, 2019, 04:26:15 PM »

So how much extra work would it have been for them to have connected each pole up along the way vs going straight past it to reach my pole?

Lots. There's a reason why when they do cabling between exchanges they don't branch out to every property on the way, or when they built FTTC originally they didn't then connect every property on their way to the AN and then to each cabinet.
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Chrysalis

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Re: Openreach FTTP – Final 10% of UK Likely to Cost £4000 Per Premises
« Reply #3 on: August 05, 2019, 05:00:52 PM »

That sale of its van fleet, I see as a short term accountancy gain.  In the long term it will lose money unless BT can forsee that in the future they will be using way less vans.  Its sort of like how a store sells the building it owns, then rents it back, and over the years overburdens itself with the rent.

However vans do age and depreciate in value unlike buildings so my comparison is not apples to apples.  If BT end up managing to retire copper, then engineers required to work on faults will nosedive, and vans accordingly.  Interestingly the article states tho that they also own many of the vehicles used by other companies.  So this doesnt just affect openreach.  So given that at some point copper will get retired (when ofcom see sense), and assuming this new arrangement has the new owner of the fleet lease directly to the other companies (instead of BT been a middleman) this could be a good move.

On the final 10% I am hoping when this final 10% does start to become the concern, areas which have "ultrafast" only via cable/g.fast are "not" counted as been part of that 90% coverage.
« Last Edit: August 05, 2019, 05:04:41 PM by Chrysalis »
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