Fiber in the loop: where and when is it feasible?

The feasibility of fiber-in-the-loop (FITL) is analyzed, dividing the local loop into four segments based on density: the urban business area, the urban residential area, suburban new growth areas, and a rural allocation area. A cost model is constructed around key network elements using realistic prices found in the marketplace. This model takes into account the impact of the synchronous optical network (SONET), remote powering issues, and network upgradability to broadband services. As a means to determine the feasibility of FITL in the future, the cost models of the network elements are subject to projected industry cost trends, and the analysis is repeated for three different points in time (1992, 1995, and 1998) to account for price reductions due to experience. Regulatory issues and their impact on the economic feasibility of FITL are also analyzed