Telecom operators intending to launch IPTV and triple play services may find ADSL2+ lacking, according to a new report.
The report, “Fibre in the Last Mile: the business case for FTTP and VDSL,” from telecom, IT and media adviser Analysys, evaluates the realistic deployment options for each of the DSL and fiber-based technologies likely to be used in Western Europe.
According to report co-author Martin Scott, real-world speeds of DSL technologies can be up to 40 percent lower at source than their theoretical maximum. ADSL2+ “does not leave a lot of reliable bandwidth to play with over and above one HDTV stream,” he said. As a result, operators should look to VDSL2 and fiber.
Among the report’s findings are:
- VDSL technologies are the most financially sound option in Western European countries, though payback will take at least six years.
- Large fiber-to-the-premises (FTTP) builds will not earn a return on investment (ROI) for at least 15 years, making state-aided builds the only viable model.
- Telcos must consider losses from not upgrading copper networks, as well as gains from upgrading them. Cash lost from doing nothing could exceed cumulative negative cash flow from a fiber build after as little as 10 years.
For more information, visit: www.research.analysys.com.