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10/11/2007

FTTH Vs. Broadband-Wireless: Different Networks for Different Needs


While W2i is committed to exploring local-government operational efficiency improvements and social and economic development through wireless, local authorities' technology decisionmaking may begin a step before this with questions about wireless versus wireline solutions (or both), including Fiber-to-the-Home (FTTH). W2i argues that FTTH and wireless infrastructure respond to very different needs in a community and offers a brief compare-and-contrast on the matter. Your comments are invited.

FTTH Attributes

  • Large-capacity fixed infrastructure aimed at providing residential and business high-speed access.
  • Longer, more capital-intensive deployment cycles
  • Easier to align with traditional finance as it can be amortized over a long cycle
  • Not usable for portable, nomadic or mobIle services
  • Requires significant take-up rates to support
  • Residential subscription/advertising business model
  • Primary competition is cable
  • Primary driver: home user
  • Secondary driver: government point-to-point connectivity

Broadband-Wireless Attributes

  • Multipurpose cloud infrastructure aimed at providing portable, nomadic or mobile services with possible residential and business extension
  • Much shorter and less capital intensive deployment cycles
  • Harder to finance with traditional methods because the amortization must be shorter to reflect faster obsolescence
  • Can be largely justified by government mission critical services and efficiency improvement applications
  • Hybrid business model based on government operations return on investment plus subscription/advertising business models
  • Real competition is 3G cellular networks
  • Primary driver: government operations
  • Secondary driver: commercial road warriors, low cost residential access

back


Related Items:

• Minnesota, Get Broadband Program

• W2i Announces 3rd Annual Best Practices Awards Winners

• Thanks to Verizon, U.S. in Top 10 in Global FTTH Push

• 'City-scale' Means A Whole Lot More Than Infrastructure

• Doug Townsend, IT Director, Medford (OR) - Part 2

• Tallahassee `08


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