Optical access networks: Business guidelines and policy recommendations

Within the European FP7 project OASE, we have studied different business models for optical access networks. Based on an exploration of existing FTTH cases in Sweden, the Netherland and Germany, we developed a model for a cost-benefit analysis for the physical infrastructure provider (PIP) as well as the network provider (NP). Our evaluations have shown that the business case for the PIP is very difficult, even impossible in sparsely populated areas. Demand aggregation is an effective measure to guarantee earlier return on investment for the PIP. In-house deployment and CPE are significant cost factors for the NP. Business models that allow to allocate these costs to house or home owners should get enough attention. Furthermore, open access on fiber, wavelength and bit stream level allows for additional competition but also leads to additional opportunities and costs. Finally, some cross-sectorial effects can be expected from a fiber deployment. This could be an additional stimulus for national, regional or municipal governments to invest. In this way public support may be desirable.