Having a GEA Etherlink (one-off charge of £2000 plus VAT per GigE) is all well and good - but it doesn't get an end-user connected. For that, you either need a BT Openreach FTTx connection, or BT Openreach SMPF/MPF and a ADSL2+ line card port.This 200 exchange deployment is focused on high speed (FTTx) and high margin (EFM and leased line) services. All the exchanges have FTTx available. The additional cost of Zen paying BT Openreach to provide an FTTx connection over Zen providing an ADSL2+ port on their MSAN and paying BT Openreach for SMPF is unlikely to be much, and will be more than cancelled out by the higher retail price for the FTTx service sold to the end user.
I think there are charges for each connection for SMPF, whereas for FTTC there is only the GEA links (multiples of) that need to be fitted. Potentially a one-off charge (maybe if using 10 GigE).
My guess is that it isn't much cheaper for Zen to procure an ADSL2+ line card port and pay BT Openreach for SMPF or MPF than to pay BT Openreach for FTTx. I'd expect a business / enthusiast ISP like Zen to focus on FTTx where available, and their margins on FTTx are likely better than for ADSL2+. Moreover, the savings on BT Wholesale WBMC backhaul charges will be smaller for the (average) ADSL2+ customer than the (average) FTTx customer, because the faster FTTx connections are likely to be used more.
Only Zen know the economics of the various options. It's possible we will see LLU ADSL2+ from Zen using their new network, but I have my doubts. I think Zen are more likely to invest in enhancing the footprint of their network rather than in ADSL2+ line cards.
The ADSL2+ customers on 200 exchanges that all support FTTx will likely be relatively small proportion of Zen's overall ADSL2+ user base. How many exchanges are there in total?Zen would also incur additional support and training costs if they launched SMPF and/or MPF services. It is debatable whether they could recover the costs of setting up the support infrastructure considering the relatively small proportion of exchanges with a Zen MSAN.
I was assuming all 200 Zen PoPs had an MSAN, unlike the 4 LLU exchanges which had old style DSLAM kit?



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