|New Study Claims Incumbents Hold The FTTH Ace-Card|
Following analysis of the German, French, Spanish, Italian, Portuguese and Swedish markets, this week research group WIK has reported that only incumbent telecom operators posses the economies of scale required to pursue FTTH rollouts.
Despite increasing competitive pressure, the authors of the report claim an estimated 30% cost advantage is weighed in favour of incumbents when deploying fibre for broadband services, owing to ownership of infrastructure pathways and huge, long-standing subscriber bases that continue to dominate local market share. In some countries the return on capital was estimated at 10%, similar to today’s regulated copper access networks.
The report, which advocates the opening-up of networks and passive infrastructure, also used data from the OECD and various European governments.
*These comments do not necessarily reflect the views of the FTTH Council Europe.