The cost to build UK's next generation networks

Telecommunications consultancy Analysys Mason produced a report on the cost of building the UK’s next generation fibre-based networks in September 2008.

It estimated the cost of fibre to the cabinet (FTTC) at £5.1bn, of fibre to the cabinet with a wireless link to the home at £24.5bn, and of fibre to the home at £28.8bn. This last figure is roughly £1000 per home, and less than that if you include business premises.

BT said it could extend its coverage from half of homes to two-thirds of homes, i.e from 13.5 million homes to 18 million home for an extra £1bn, or £211 per home. This would be an FTTC service with a copper pair link to the home, but still offering up to 40Mbps, if you lived close to a BT street cabinet.

Since then innovation and supply of fibre have seen costs tumble.  The Analysys Masons report provides plenty of insight into the issues involved.