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Overview of the New Technology Deployment Model: Broadband with Associated Depreciation and Overheads

 

March 1995

 

Subject:

 

Costs, Markets (Rural, Urban, Business, Residential), Rural Services, Technology

 

Full Paper          Executive Summary          Broadband Model

 

Overview:

Part of a series on advanced technology deployment.  Overview of the New Technology Deployment Model, provides the first publicly available nationwide data (urban/rural; business/residential) on fiber optic deployment.

 

For certain markets, fiber deployment made sense in the early 1990s from the standpoint of costs and revenues.  The results indicate that revenues existed for half the U.S. households and businesses to have fiber services by the early 2000s.  For a discussion of some of the regulatory barriers, see Regulatory Wild Cards, Pick a Card, A Snapshot in Time, and Revving Up the Communications Economic Engine.)

 

In this overview, simple charts show the cost of broadband deployment compared to a nationwide benchmark for local telephone company revenues.  An additional chart provides capital investment needed for a 20-year deployment.

 

This overview of the model also explains the basic design, including definitions, assumptions, and caveats.  This paper was written in conjunction with the distribution of a computer model (software and user guide), called the New Technology Deployment Model.

 

 

 

 

Copyright 2006, Converging Industries Research Foundation and Carol Weinhaus, Cambridge, MA.  All Rights Reserved.

 

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