FTTH Council Touts Cost Cuts in Pushing Pro-Fiber CAF II Reverse Auction Rules
The Fiber to the Home Council cited a member's cost reductions in arguing for Connect America Fund Phase II reverse auction rules that favor fiber deployment. Noting the economic challenges of rolling out fiber networks in rural areas, the FTTH…
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Council said Clearfield Inc. is using innovative practices and equipment to drive down the costs of deployment, including in rural areas. "For instance, in working with a rural provider in a smaller community in Minnesota, [Clearfield] used 'open architecture' equipment and other practices that resulted in the FTTH deployment costing approximately $800 per home passed, which is similar to the cost of an urban build," the trade group said in a filing posted Friday in docket 10-90 summarizing an FCC meeting about the planned CAF II reverse auction, which is the subject of a draft order. "In another build in rural Oregon, the cost to pass a home was approximately $1,100. Just five years ago, the cost of a rural FTTH build was much greater." Clearfield believes more savings can be expected -- particularly on labor, a major cost component -- by providing equipment that's easier to connect and improving productivity through better training, the FTTH Council said. The reduced costs have lowered the "payback period" in rural areas to seven years, it said. Based on market trends, "the Commission should conclude that FTTH deployments in all but the very least dense rural areas are economically viable and will be increasingly so," said the FTTH Council. "This means that the Commission should feel confident that it can use CAF support to bring the same 'future-proof' technology (FTTH networks) to unserved areas cost-effectively and should not fear 'running out of support' if FTTH is preferred in a competitive bidding process." The Utilities Telecom Council and the National Rural Electric Cooperative Association also urged the FCC to adopt fiber-friendly CAF II auction rules, said a filing last week. Commissioner Mike O’Rielly and satellite interests have voiced concerns about a possible FCC fiber preference (see 1511170063 and 1512290025).