[January 31, 2013]

Research and Markets: Physical Infrastructure Access (PIA) Versus Self-Build Fibre In The Final Third: Digging Into The Financials

Research and Markets (http://www.researchandmarkets.com/research/lr64cs/pia_versus) has announced the addition of the "PIA versus self-build fibre in the final third: digging into the financials" report to their offering.

Much is spoken about the ability of physical infrastructure access (PIA) to reduce the costs of entry for potential new access infrastructure providers, but what is the actual impact on financial performance

PIA promises to improve the business case for fibre-to-the-home (FTTH) in the 'final third' - that is, less-densely populated areas. In this report, we take a closer look at the impact of PIA and novel civil engineering techniques on project costs. The author also assesses the impact of these potential cost savings and of public funding on the financial performance of FTTH projects in such areas.

This Report provide:

- an overview of the Openreach PIA offer and civil engineering techniques that can be used to reduce the cost of access infrastructure

- an analysis of the likely reduction in one-off and recurring costs that could be achieved through the use of PIA, slot-cutting and mole-ploughing, broken down into the key cost categories

- an analysis of the sensitivity of total project costs to each of the key cost categories

- an examination of the impact of the potential cost reductions on the financial performance of infrastructure projects

- an assessment of the impact of various levels of public-sector funding

- conclusions on the financial characteristics of the projects, expressed in terms of payback period and rate of return.

Key Topics Covered:

Civil engineering techniques

Results: Self-build

Self-build with slot cutting and mole ploughing, instead of traditional trenching, could cut deployment costs by over 40%

Use of PIA with slot cutting and mole ploughing, instead of traditional trenching, could cut deployment costs by 50% or more

Use of PIA has the potential to reduce the CPPC for 'b' geotypes to GBP1910 for geotype 6b and GBP2820 for geotype 7b

In order to assess financial performance, we have assumed that take-up evolves over time to reach 55-61%

Self-build results in payback periods that are typically in excess of ten years for 'b' geotypes

Use of PIA shortens the payback period, but it is still ten years or more for 'b' geotypes

Total costs are particularly sensitive to unit costs for digging routes

The ten-year total cost is strongly sensitive to the extent to which distribution ducts can be re-used

List of Figures

For more information visit http://www.researchandmarkets.com/research/lr64cs/pia_versus

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