Executive Summary

One of the significant challenges facing network operators today is the high capital cost of deploying next generation broadband network to individual homes or schools. Fiber to the home only makes economic sense for a relatively small percentage of homes or schools. One solution is a novel new approach under development in several jurisdictions around the world is to bundle the cost of next generation broadband Internet with the deployment of solar panels on the owners roof or through the sale of renewable energy to the homeowner. Rather than charging customers directly for the costs of deployment of the high speed broadband network theses costs instead are amortized over several years as a small discount on the customer’s Feed in Tariff (FIT) or renewable energy bill. There are many companies such as Solar City that will fund the entire capital cost of deploying solar panels on the roofs of homes or schools, who in turn make their money from the long term sale of the power from the panels to the electrical grid. In addition there are no Energy Service Companies (ESCOs) and Green Bond Funds that will underwrite the cost of larger installations.

For further information and detailed business analysis please contact Bill St. Arnaud at bill.st.arnaud@gmail.com.

Monday, August 24, 2009

The regulatory and telecom policy issues of PON versus home run fiber

[Here are 2 excellent pointers on the telcom policy and regulatory issues with respect to PON versus home run fiber. As governments around the world accelerate plans to deploy next generation broadband there is clear desire by many to ensure greater completion and create a level playing field for new entrants. Most incumbents prefer to deploy various forms of PON as it keeps them in control of the network (and the customer), even if they are obligated to provide some sort of open access. PON is also seen as marginally cheaper than point to point home run fiber (but with new optical ribbons that is debatable). Regulators on the other hand, especially in Europe, see point to point home run fiber as way of promoting facilities based competition and ensuring structural separation between service providers and infrastructure. Home run fiber also opens the door to new business models such as condominium fiber, customer ownership of the last mile (Google’s Homes with tails) and Green Broadband where the cost of fiber and service is bundled with the energy bill. Thanks to Prashanta Mukherjee and Benoit Felten for these pointers – BSA]

Regulating Fiber Access Networks in New Zealand
http://www.prashanta.com/assets/Uploads/Highlights-assets/2009-8-20-Regulating-Fibre-in-NZ-Paper-Web.pdf

Point to Point versus GPON: A comparison of two optical network access technologies
http://www.fiberevolution.com/2009/08/gpon-vs-p2p-comparison.html

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