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An infrastructure company

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Examples from around the world have indicated that it is very difficult to build a traditional telecoms business plan around a national Fibre-to-the-Premises (FttP) network. If it is based on Internet access alone it simply would not be able to generate enough revenue from the traditional services to warrant such an investment.


 

Under a structurally separated arrangement, an infrastructure company should become the new utility that will build/own the fibre network.


 

A utility’s based company could significantly speed up the deployment of national FttP. It takes away the many conflicts of interest that exist in the industry and provides the most effective and efficient way to deploy infrastructure. At the same time, it is in the interest of the infrastructure company to maximise the use of this infrastructure.


 

In the end, investing in infrastructure is one of the most low-risk investment scenarios – and it should be even more attractive in these testing economic times. All telco infrastructure experts calculate an economic lifetime for fibre networks of 25-30 years.


 

According to financial experts, cost of capital could now be as low as 5% but certainly not much higher than 8-9%.

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