its about bulk orders. The first installation is going to be a loss maker, its the same case with FTTC really, if BT enable a cabinet and only one guy orders it he is a loss maker. FTTP like FTTC is profitable eventually providing enough people in any given area order it. It may cost say 2k to activate the first customer but then if his neighbour orders it may cost £50 to activate the neighbour, bringing the average down to 1k each. Another 8 neighburs order and its down to £200 each.
Of course the chances of there been enough FTTP orders to get the numbers right is low for what I feel is 2 prime reasons excluding marketing, (a) FTTC rollout is occuring at the same time, FTTC is creating enough buzz and performance improvement for people to be mostly happy with it, and of course (b) the contract lengths plus cost. The question is how would FTTP playout if FTTC didnt exist as a product and FTTP was priced similiar or at least not much more than FTTC. I think it certianly would have decent takeup but BT have a higher outlay with FTTP so the risks are higher and of course they seem to have not nailed down rolling it out efficiently, reports of bodged schedules, install's been missed and so on. BT taking weeks/months to install FTTP for one properly whilst someone like verizon just pass every house and then install it in days when ordered. There seems something about BT's FTTP rollout which doesnt add up, either BT's network is in a really dire state making it diffilcult to get FTTP deployed or the procedure's are bad. The speed of the FTTC rollout seems out of character for BT as openreach are bad at almost everything else. Certianly I think one key mistake was trying to put FTTP in places like cornwall ahead of cities like leicester, leeds, manchester, birmingham etc.
Edited by Chrysalis (Sun 26-Jan-14 21:45:32)