Note: comments posted are strictly the opinion of the poster and not necessarily those of Fiber Planners Inc. or any other posters.
Wednesday, September 10, 2003
SBC's CEO kisses off any intention of doing FTTP
Why are we not surprised?
Speaking to a Wall Street group, SBC CEO Whitacre said:
"As for the recent joint FTTP RFP, Whitacre estimates that the costs will probably be above $2,000 per home (equipment plus trenching). Due to this cost and to regulatory requirements to preserve some level of competitor access on these new lines, Whitacre said fiber-to-the-home is not in its plans, except in certain new deployments. Whitacre said he just "doesn't see the incentive for FTTP" and that even a drop of several hundred dollars in equipment prices would be unlikely to change his mind."
If a FTTP (fiber to the premises) developer doesn't offer a cable TV lineup, Whitacre's probably right. Municipal broadband utilities offer a full triple play and still make their numbers with just 40% penetration and similar (or lower) per home costs.
I sense the Bells have a collective reluctance to offer anymore than data and voice over broadband lines.
I hope Whitacre's comments don't reflect the thinking at Verizon and BellSouth as well.