Very high-speed network ROI

A new study from Idate shows that the return on investments of a very high-speed (fiber-based) telecom network should be about 10 years in France. To deploy such a network covering about 40% of the French population could cost about €10bn and take about 9 years. With the cost assessment of about €900 per passed connection, €2000 per subscriber, and an average revenue per user (ARPU) of €43, Idate found that EBITDA should become positive in five years, and profitability should be in 9 years. Idate provided some advices in addition to the study: the development of such very high-speed network is not free and should be subsidized; entry barriers should be removed (civil works impact); the syndication of the network is likely; such new infrastructures should be likely regulated.

At a smaller scale, the Hauts de Seine community, a large county on the edge of Paris (France) with about 1.5m people, is planning to build a FTTB network, syndicated and used, under open and equal access, by all service providers. SPs would have to provide the last mile between the basement and the end-user. The Hauts de Seine community could subsidize the project up to €70m.