Last Mile Design

Mon Feb 11 09:31:13 UTC 2019

On 2019-02-11 04:57 CET, Mark Tinka wrote:

> On 10/Feb/19 17:46, Baldur Norddahl wrote:
[...]
>> In any case, we are now building out our own fiber to cover the gaps
>> left by TDC. Here the end user has to pay DKK 12,000 (USD 1,824 / EUR
>> 1,608) one time fee and with that he gets everything including 5 years
>> of free internet. This works out at DKK 200 / month including 25% VAT
>> tax (USD 30 / EUR 27).

> Very interesting - don't you feel that an initial outlay like that could
> put some potential customers off? Then again, per capita income in
> Denmark, I'd imagine, could allow most to think about this. If all that
> buys me Internet access for 5 years before I have to shell out anymore
> wedge, I'd do it.

I assume this is targeted towards single-family detached houses, where
the family owns the house themselves.  Then they likely will view that
as an investment in the house.  If you want to sell your house a couple
of years later, and it doesn't have a fiber connection, buyers will be
less attracted to the house, and want to pay less.

It might also be more expensive to connect after the initial buildout
of an area.  I believe that's how the commercial companies in Sweden
that build FTTH work.

I can also note that where I live (Linköping, Sweden), the municipal
fiber company charges ~2400 EUR to connect a single-family home to their
network.  That does *not* include the laying of fiber on your property,
from the street to your house.  And on top of that, you need to buy
Internet connectivity from a normal commercial ISP at a monthly cost;
the municipal fiber company only provides layer 2 connectivity between
the home and the ISPs (currently 19 different ISPs).

	/Bellman

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