FTTH Cost of Deployment – Case: Seine-et-Marne

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Seine-et-Marne, outside Paris (in the area of Roissy) have finished deploying the first phase of its ambitious FTTH rollout (under the name sem@for77) last year.

Seine-et-Marne aim at 750M euros investment to serve in full the entire area with FTTH access (570k end subscribers) and have signed a 20 years contract with Covage for managing the network.

The reason why I bring that up now is that they recently released a few interesting statistics projections regarding the costs of deployment:

A. here’s the top 5% and the least 5% connections accumulated costs:

  • 10 M€ for the 27.000 (5%) less expensive access points
  • 100 M€ for the 27.000 prises (5%) more expensive access points

B. here’s how the FTTH connections are categorized based on deployment costs (with an average cost per connection at 1.300 euros):

  • 250 à 700 €: 23%
  • 701 à 1.000 €: 20%
  • 1.001 à 1.500 €: 25%
  • 1.501 € à 3.000 €: 26%
  • > 3.000 €: 5%

Well, it looks pretty damn cheap!

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  4. On The Cost of Defering the National Broadband Plan in Cebit & WCIT
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On June 18, 2010   /   Access, Muni/Broadband   /   12 Comments

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  • http://www.broadbandprime.com Costas Troulos

    This is a comment

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  • http://twitter.com/mduchesn Marc Duchesne

    @Costas : as I'm both a Seine & Marne resident and a consultant working with the local authorities (and a couple of municipalities) on FTTH matters, I'd like to bring some grains of salt on your article :

    1. Sem@for77 is NOT the FTTH network per se. It is the regional backbone deployed by the General Council – the local gov – to irrigate each and every municipality with Broadband access (i.e. 2Mbps min).
    The goal was to cover the whole Seine & Marne territory with Broadband, not letting any municipality (including the smallest village) more than 10 kilometers away from the backbone.
    Sem@for77 then consists of a mix of Fiber, WiMax, and BPL (Outdoor PLC), depending on the zone.

    2. Covage, the joint-venture between french Construction & Asset Management giant Vinci and canadian Axia (who couldn't convince Palo Alto to go FTTH) has effectively won the contract for the design, construction, and management of the Sem@for77 network. Nothing is done yet for the next step, which is FTTH.

    3. Re. FTTH : the local gov has ordered two studies last year: one on the technical aspects of the project, the other one on usages, at two different consulting firms. Interesting enough : the first study has been delivered on time, whilst the report on Usages was delayed due to lack of materials…

    Last, on the costs you've mentioned here : please keep in mind that Seine & Marne is a) the largest département of the Ile-de-France region (http://en.wikipedia.org/wiki/%C3%8Ele-de-France…)), b) which includes economic areas such as Marne-la-Vallée / Disneyland Paris, yet c) is mainly a rural area.
    Thus the following to explain the apparently low costs of FTTH : 1) an Open Neutral Access regional backbone does exist – Sem@for77; 2) all the economic, industrial, and public zones are already served by Ultra-Broadband/Fiber – Sem@for77; 3) modern technics e.g. Aerial Fiber help reducing the deployments's costs in rural zones.

    Shall you need more details, please don't hesitate to call…
    _Yours

  • http://twitter.com/mduchesn Marc Duchesne

    Funny enough : the @FiberNews feed is mine, yet I didn't notice the publication of Costas's post until yesterday when reading my Feedly at work. Limits of the RSS !…

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About The Author

Costas Troulos is a telecoms analyst and passionately covers wireline broadband and related developments in Greece and the rest of the world. For the last 4 years he has been involved in several consulting and research projects on public broadband investments.