2. We’re going to discuss learning from… “ 1 GIGABIT EVERYWHERE” Several million homes passed planned/implemented The business case and strategy for the World’s fastest ubiquitous network - Our own startup operator (rated top 5 in the World for service value by Point Topic) Planning a 20,000 cabinet FTTX deployment with up to $3 billion investment
3. Technologies can rarely be considered in isolation <ul><li>How do companies commit to a network to compete with their challengers… </li></ul><ul><ul><li>3G </li></ul></ul><ul><ul><li>WiMAX </li></ul></ul><ul><ul><li>LTE </li></ul></ul><ul><ul><li>FTTX </li></ul></ul><ul><ul><li>Source: Alcatel-Lucent </li></ul></ul>
4. ..and even the simplest deployments can be very complex – particularly for incumbents <ul><ul><li>Source: BT </li></ul></ul>
5. You can’t normally build everywhere… Source: Ventura Team LLP
6. There is no ‘one right approach’ for every country/situation… These choices are considered in isolation and the cost of migration later forgotten FTTC (VDSL2) GPON PTP Typical Speeds >40Mbps <100Mbps <=1Gbps PROS Cheapest solution Cheaper than PTP initially (we’ve seen 5% savings where ducts are widely available to 21%) Saving in central office space Future proof Symmetric services Security for businesses CONS Limited speed Problems of quality of final copper drop Limited opex savings Shared fibre – not seen as secure as PTP Will probably need upgrade in the future Lots of fibre to install Larger central offices required
7. … and the fibre product offerings vary enormously from country to country <ul><li>These bundles from different operators are very different propositions from one another </li></ul><ul><ul><ul><li>1 Gbps for $26 (Hong Kong) or 30 Mbps for $60 (Portugal) </li></ul></ul></ul>
8. However take up is not always as high as expected – people don’t just buy technology Source: Ofcom How much more will people pay to double their broadband speed?
9. Getting the scenario right for any deployment is very complex – small changes create huge impacts on results This fictional example inspired by a real case shows different availability & competition scenarios (defined on the left) and resulting peak funding (PFR) and rate of return (IRR) and also takes into account the cross-impacts on mobile broadband