[1st-mile-nm] Broadband Strategy: Conduit

[Steve Ross]

The cost models are remarkably site-specific. In greenfield, 
where conduit typically goes down in a trench for all 
utilities, the marginal cost associated with an empty duct 
in a 4- or 6-channel conduit block is often zero.



Steven S. Ross
Editor-in-Chief
Broadband Properties
steve at broadbandproperties.com
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Gary Gomes wrote:
> This is precisely the approach which the Broadband Technology Advisory
> Committee recently recommended to the Las Cruces; we'll keep the list
> advised of our progress.
> 
> I do think that it is important to refine our numbers, in order to present
> an accurate picture to the municipalities.
> 
> I have generally seen numbers for installed FTTH (including electronics) in
> the range of $30per foot, with about half the cost associated with opening
> and closing the street.
> 
> In a recent roadway project, the City got a price of $5 per foot to install
> conduit in parallel with road work.
> 
> I would appreciate any better (more accurate and granular) network
> deployment cost models that readers could provide.
> 
> Gary
> -----Original Message-----
> From: 1st-mile-nm-bounces at mailman.dcn.org
> [mailto:1st-mile-nm-bounces at mailman.dcn.org] On Behalf Of Richard Lowenberg
> Sent: Friday, July 25, 2008 1:42 PM
> To: 1st-mile-nm at mailman.dcn.org
> Subject: [1st-mile-nm] Broadband Strategy: Conduit
> 
> The Best Municipal Broadband Strategy - Just Lay Conduit
> 
> July 24, 2008 4:18 PM
> 
> http://app-rising.com/2008/07/the_best_municipal_broadband_s.html
> 
> In Portland on Monday after my panel I was chatting with fellow panelist Jim
> Stegeman, president of CostQuest Associates.
> 
> While his presentation dealt with the cost of deploying wireless 3G
> nationwide,
> during our follow-up conversation we got into the topic of how much it costs
> to
> deploy fiber. That's when Jim shared a stunning number with me: fiber only
> costs
> $1 a foot while putting in the underground conduit that it needs to run
> through
> can cost $13-14 a foot, with that number varying based on the
> characteristics
> of the areas in which it's being deployed.
> 
> The reason laying conduit's so expensive is because of the labor it takes to
> dig
> up the streets, put in the conduit, and then cover it back up again. The
> actual
> cost of the conduit itself isn't all that high.
> 
> What that also means is that once the conduit's in the ground, the cost of
> laying fiber can be reduced dramatically, orders of magnitude cheaper.
> 
> So imagine this: what could happen if we started having cities lay conduit
> whenever they're ripping up roads for other reasons, like upgrading the
> sewer
> system?
> 
> There are many reasons why cities have to rip up roads, and once they're
> ripped
> up there isn't all that much additional cost that would be needed to put in
> conduit.
> 
> And once that conduit's in place, it would dramatically reduce the cost,
> time,
> and complexity of deploying fiber.
> 
> Plus, if cities needed to recoup their investment in conduit, they could
> likely
> charge whoever comes in to lay fiber for access to it. Of course they
> wouldn't
> want to charge too much lest they dissuade private investment, but I'd think
> there'd certainly be enough there to have the deployment of conduit pay for
> itself.
> 
> By doing this, cities can improve the economics of any public or private
> deployment of full fiber networks. So much so, in fact, that I'd bet at
> least
> in some communities it would shift the balance sheet so dramatically that it
> might cause incumbents who are currently sitting on the sidelines when it
> comes
> to deploying fiber all the way to the home to get up off the bench since now
> the
> economics of these endeavors become much more feasible.
> 
> So if you ask me what's the best broadband strategy for any municipality,
> I'll
> say that it starts with making sure you don't miss the opportunity to lay
> conduit whenever possible, thereby setting the stage for improving your
> chances
> of getting wired with fiber in the future.
> 
>