BSG works out costs of deploying fibre in the UK

According to the report from the Broadband Stakeholder Group (BSG), the roll out of fibre based broadband network in the UK will cost between £5.1bn and £28.8bn. This means the cost involved in deployment of fibre optic network would vary according to the type of technologies used and the geographical factors. For instance, deploying the next generation mobile broadband network in rural areas in the UK would involve additional investment, according to the report.

The Guardian reports Analysys Mason of the BSG as saying:
“This is the most comprehensive analysis produced to date on the costs of deploying fibre in the UK. The scale of the costs looks daunting but the report does shed light on how some of these costs can be reduced and what the likely extent of commercial rollout will be. It should focus minds of commercial players, policy makers and regulators on the potential solutions to these challenges.”

The report shows that the roll out of fibre optic network nationwide using FTTC (fibre to the cabinet) would cost £5.1bn. This will also compare UK broadband network provided by the UK ISP that cost just one-fourths of this huge investment. However, FTTP technology which takes fibre to the premises of the broadband customers will cost nearly £28.8 bn.

As for the deployment of fibre based business broadband services in the rural areas, Anthony Walker, the CEO of BSG said:
“If operators could achieve a higher than expected level of take-up in rural areas, then the business case for deployment in those areas could improve significantly”

Matt Yardley, Partner at Analysys Mason said that the cost factors would play an important role in deploying the network in the rural areas:
“The magnitude of the costs, and how the costs differ between urban and rural areas, will be important for operators, media players and public sector organisations looking to develop their future broadband strategies”