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.

Wednesday, September 21, 2011

Customer Owned Fiber Network in Durban South Africa

“@tim_poulus: Successful customer-owned network near Durban (SA): FTTH beating ADSL pricing, plans uncapped service. http://t.co/rIaSyCe”


10 Mbps Fibre versus 10 Mbps ADSL
Rudolph Muller| 22 May, 2011
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ATEC recently launched their 10 Mbps FTTH service in Kindlewood Estate. This is how the pricing stacks up against Telkom’s 10 Mbps ADSL offering
ATEC recently upgraded the internet speed available to residents at Kindlewood Estate from 2 Mbps to 10 Mbps on their fibre network.
“At Kindlewood Estate our clients now have 10 Mbps synchronous connections with 1 GB of data for only R197 per month,” explained ATEC CEO Frans Verwoerd
Verwoerd explained that their affordable access pricing is made possible because of their business model in which the developer pays for and owns the last mile connection. This reduces capital expenditure by ATEC (the telco) which needs to be recuperated, allowing for lower rates.
While ATEC’s fibre access portion is aggressively priced, their data prices ranging between R45 per GB and R60 per GB were criticized by ADSL users who felt it is out of sync with market related rates.
Despite the higher per-GB prices, ATEC’s overall value proposition still looks attractive when compared with Telkom’s 10 Mbps ADSL offerings as the table below shows.


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