Economic feasibility of fiber-­to-­the-­home networks



Title Economic feasibility of fiber-­to-­the-­home networks
Author(s) Todd Clark
Date 2011
Institution University of Prince Edward Island
Supervisor(s) Gerry Mahar
Degree earned Master of Business Administration
Place published Charlottetown, P.E.I.
Abstract Fiber-to-the-home (FTTH) is a communications technology that provides a multitude of applications and services over a single fiber optic network. These include basic services such as telephone, internet and television, and more advanced applications like tele-medicine, tele-working, smart grid power monitoring technology, remote home utility control and e-learning. Canada, in general, and PEI in particular, lags the world in FTTH access per capita as measured by the number of households within the population that have subscribed to a FTTH service. In December 2008, twenty counties were listed as having reached 1% access of FTTH; Canada was not on that list. Recently in the US, a growing number of municipal governments have invested significant capital, and have been building FTTH networks themselves, similar to another era when they had built roads, sewers and electrical systems (St. John, 2008). This research study examined the economic feasibility of municipal investment in FTTH networks by comparing the experience of three US cities with their respective state-wide economic data. This applied research examined the economic benefits for the municipality using three measures. The measures were ␣ (1) per capita income, (2) unemployment rates and (3) housing prices. While the evidence suggested an increase in per capita income was associated with the implementation FTTH. The finding did not suggest there was any association between a fiber network and reduced unemployment rates or increased housing values. This research also provided an estimated cost range to build a municipal FTTH network in 2010. This data could be used to calculate a Return on Investment (ROI) model. The ROI models may be used to evaluate the economic feasibility of municipal capital investment in potential FTTH projects.
Use/Reproduction In presenting this signature project report in partial fulfilment of the requirements for a Master of Business Administration degree from the University of Prince Edward Island, the author has agreed that the Robertson Library, University of Prince Edward Island, may make this signature project freely available for inspection and gives permission to add an electronic version of the signature project to the Digital Repository at the University of Prince Edward Island. Moreover the author further agrees that permission for extensive copying of this signature project report for scholarly purposes may be granted by the professor or professors who supervised the author's project work, or, in their absence, by the Dean of the School of Business. It is understood that any copying or publication or use of this signature project report or parts thereof for financial gain shall not be allowed without the author's written permission. It is also understood that due recognition shall be given to the author and to the University of Prince Edward Island in any scholarly use which may be made of any material in the author's report.

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