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EU report challenges progress on digital targets and NGA competitiveness…but suggests the wrong answer.
In a sad definition of what we all know, an EU report here highlights a failure to implement the recommendations of the September 2010 report MORE »
Who are these people? They seem to have no idea what is going on in more advanced markets. As one of the world’s leading economies surely the UK should be a leading broadband market but in general it is not the case. The BSG defends the status quo and seemingly ignores reality elsewhere. Shame.
Interesting report. Yes prepared for Vodafone but plenty of ex-BT people at Frontier I believe. It does not address the replacement anomaly per se but related the related issue of prices v reasonable costs. Still, suggests another way in which the UK telecom regulatory system has not been working well.
Comment on his blog from David Brunnen re the replacement anomaly after we met recently.
The first few minutes of video is worth watching if you have the time but the article here summarises the main points re the BDUK debacle.
An excellent submission to the EU’s consultation on FTTH investment by the FTTH Council takes and builds on the ideas generated last year in my finance stimulus report. A great deal is added of course and several news insights and ideas. Good work. Lets hope someone takes note.Link to FTTH COUNCIL EUROPE RESPONSE TO CONSULTATION ‘LONG TERM FINANCING OF THE EUROPEAN ECONOMY’
My recent presentation (and those of other speakers) from the afternoon event in Glasgow recently is now online for your viewing pleasure.
Subject: Announcement from Scotland’s Digital Dialogue
A key element of the Scottish Government’s vision for Scotland to be a world-class digital nation by 2020 will be future-proofed digital infrastructure that supports any device, anywhere, anytime connectivity across Scotland. Significant investment is already being made by industry, and by Scottish Government through our Step Change Programme.
However, fulfilment of the world-class vision may require new ways of financing digital infrastructure. In May, experts in the field came together with an invited audience to explore how innovative financial and commercial models could accelerate fibre roll-out; how these could be designed to attract new investors or sources of finance; and what form public intervention should take.
See videos and presentations from the event at: Video of proceedings .
The article reports that Telecom Italia will spin-off its fixed assets so it can pull in money from a long term state investment fund to fund a €10 billion FTTH programme. Cannot see anything on the investor relations pages yet. Interesting stuff!
I will be speaking at the WORLD CLASS DIGITAL INFRASTRUCTURE FINANCING EVENT – 13 MAY 2013; 3-5pm in Edinburgh. The political dynamic in the run up to the independence referendum is generating debate on many topics including the fibre switchover and how Scotland might promote such investment in its infrastructure. It will be an interesting discussion.
$84 million for 149K homes is $560 per home passed.
Depending on the architecture I suppose they might make $1000 per sub if they had full take-up (which is extremely unlikely I assume).
Euro telcos indicated 15%-30% expected opex savings to me, consistent with this new US research result from actual deployments. Say the average bill is 30 per month and opex is around 10 (using ne third as a typical rule of thumb ratio), then 2 saved per month is 24 per year which is worth 300 PV at 8% WACC. Thats not enough alone to justify FTTH CAPEX but its a substantial part of urban costs. If the typical bill is 80 per month however then the PV would be 800 – pretty much in line with or higher in some cases than efficient urban deployment costs.