Rural fibre costs 26% of urban fibre

01 April 2011 |

Deploying 1km of fibre in a developed rural market costs 26% of the equivalent in an urban market.

Analysys Mason has found that fibre deployment in rural areas, despite being over longer distances, is cheaper per kilometre than in urban areas.

To lay 1km of fibre in an urban developed market costs $128,350 compared to $33,350 in a rural market. In emerging markets, the cost to deploy 1km of fibre in rural areas costs $15,850, equating to 36% of the $44,350 it costs in urban areas. As the distances increase the fixed costs become diluted, making rural fibre cost 25% of urban fibre in developed markets and 33% in emerging markets.

Deploying 150Mbps microwave (PTP) backhaul links costs approximately $40,000 consistently in urban areas; and 150Mbps microwave backhaul (PTMP) consistently costs over $30,000 to deploy in urban areas. Although laying fibre cable takes more capex than microwave deployments, fibre requires less opex.