Critical market parameters for viability of fiber access network business case

This paper presents the results obtained by techno-economic analysis of the fiber access (FTTH) business model. The analysis determinates a combined influence that major market parameters have on overall viability of FTTH business case. These critical parameters include the geodemographical background of the customer base, adoption of services provided over FTTH network and related additional revenues that can be generated. The analysis is based upon the incumbent´s case in Croatia, assuming previous existence of ducts within access network. The results indicate that FTTH business case is profitable in urban areas in ten-year time period, but only in a case the majority of customers subscribe to the services over the new network and simultaneously bring significant amount of additional revenues.