Equipment, outside plant costs for FTTx deployment in greenfield areas

In a greenfield area where fiber to the x (FTTx) is being planned, what does the typical cost ratio for deployment of equipment and outside plant look like, percentage-wise?

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The answer depends on several cost factors related to any given deployment. For instance, will the network be aerial or underground? If underground, will it be direct bury or will conduit be used? Will there be a shared trench with other utilities or will the project incur all plowing/trenching costs?

In a typical underground deployment using conduit in a shared trench, the equipment and associated labor will account for around 25% of the build cost. Headend equipment and labor will make up about 10% of the total. The remaining 65% of the build cost will be associated with the outside plant, with labor constituting the bulk of the costs. Under any scenario, installation labor is usually the single largest cost to be considered in a network build.

This was first published in December 2010

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