Internet Solutions trialing FTTH, cost a problem
Internet Solutions (IS) said today (12 October 2011) that they are currently trialing a fibre to the home (FTTH) service, but indicated that the costs may be too high for a commercial offering.
Speaking at the ICASA local loop unbundling (LLU) hearings, IS said that the cost of delivering FTTH to a customer is so high that it will take a very long time to recover the initial investment.
IS said that the main cost is to get the fibre connection from the curb into the customers’ home. The costly portion is not the fibre itself, but rather the trenching and legislation associated with building a fibre network.
Many other operators have also indicated that the high cost of building a residential fibre network simply makes it too expensive to show a return on investment.
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