Parametric methodology for analyzing implementation strategies of residential broadband networks: the incremental cost of integrated access

An engineering framework for estimating the investment cost of two implementation strategies intended to provide broadband (video services) access to residential customers in new construction areas is described. One strategy is the deployment of a single (digital and fiber) integrated network, and the other is the codeployment of dual, separate networks (one for narrowband and the others for TV distribution). The methodology derives the investment per subscriber as a function of network element´s costs and demographical, topological, and service penetration parameters. The methodology is applied to TELEFONICA´s network. The incremental cost of the integrated network (compared with dual networks codeployment) is estimated to be around $700 per customer. The results highlight the importance of broadband services that would not be fully provided by conventional cable TV distribution networks