Thursday, August 29, 2019

HFC vs. FTTH

Hello - I'm trying to figure out whether there are significant operating expenses associated with HFC networks that are either insignificant or non-existent in FTTH networks. One major cable company, Altice, is overbuilding its own HFC network with FTTH. They expect to be break even on the overbuild within three years due to the significant cost saves. I'm wondering if this could be the early mark of a new trend. For those familiar with networks - what are the significant cost inputs between the two networks?

After the install process is a fiber network cheaper to operate? And if so what are the key line items?

Second, what to people think about the possibility of reaching "DOCSIS Escape Velocity," whereby general data consumption growth, powered by forces like Neilsen's Law, increases at a rate that DOCSIS innovations simply cannot keep pace with. In this instance, FTTH is a clear cut winner (forget about fixed 5G the sake of the discussion) and legacy HFC networks begin to look more like the Copper networks of the past when cable became the clear cut winner with differentiated technology.



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