FTTH network economics: Key parameters impacting technology decisions

Different technology options are available to operators today for their Fiber-to-the-home (FTTH) network deployment strategy decisions. Gigabit-Passive Optical Network (GPON), Ethernet Passive Optical Network (EPON), Active Ethernet (AE) and Point-to-Point Ethernet (P2P) are the major competing technologies. There are a number of technical, economic and business drivers that impact the right choice for each specific network situation. When modeling network economics, it is important to consider a Total Cost of Ownership (TCO) model to enable operators to rightly evaluate these choices, instead of comparisons of only specific cost elements (e.g., port costs). On the other hand, in a network model with a large number of parameters it is often challenging to identify the key parameters that are critical to the decision-making. An operator runs the risk of picking an incorrect technology strategy if any of these key parameters are not identified and cost optimized. In this paper, we present the results obtained by modeling the capital investments and operations expenses incurred for some operator cases, and identify the key parameters that impact FTTH economics covering these major technologies. We show sensitivity analysis to identify the critical parameters. The methodology and results will enable operators quickly make the right FTTH technology deployment decisions.