Trimming the costs of FTTH

Verizon has provided an update on the CAPEX per home for its PON-based FiOS service. The cost for Verizon is now below $2000 per home

At the end of 2006, it is on track to achieve the following:

• CAPEX per home passed: $850
  
• CAPEX to connect a home: $880
• A total CAPEX per home of $1730
  

Verizon is projecting that for 2010 the costs will be:

• CAPEX per home passed: $700
• CAPEX to connect: $650
• A total CAPEX per home of $1350 *
  

That equates to a 22 per cent cost saving over the next 4 years. Not brilliant but any drop reduces the overall time it takes for end user revenues to cover the construction costs.

* Thanks to Frank Marum, senior analyst, The Diffusion Group for the figures