Present value of expenditures for phased fiber-in-the-loop deployment

The authors study the present value of expenditures for phased deployment of alternative fiber-in-the-loop (FITL) architectures. The main result of the present study is that substantial savings are possible from phased deployment of fiber in the loop instead of installation of the loop network for the whole model area at one time. The savings in the discounted values of capital expenditures range from 25%-40% for the FITL architectures and service mixes studied. The vast majority of the savings in all cases studied is due to deferred costs of expensive optical network unit electronics, transmitters, and receivers and matching network equipment