FTTHCon: Embarq slashes FTTP deployment costs

NASHVILLE -- Embarq has dramatically reduced its fiber-to-the-premises (FTTP) deployment costs in recent months, giving at least one of its top executives confidence that the carrier will one day find an economical way to offer its own video services.

“I personally believe we’ll [eventually] do a video play on network-based facilities,” said James Hansen, senior vice president of network services for Embarq, during a panel discussion here at the Fiber to the Home conference. “We’re still figuring out how to do it and have it make sense.”

Embarq, which deploys FTTP in greenfields only, has cut its average per-home FTTP costs 19% this year, and Hansen believes the company can shave off another 5% “fairly easily” for next year. With those improvements, the company will finally see FTTP deployment costs come down to copper deployment levels.

“We’ve achieved parity [between copper and fiber deployment costs],” he said. “Now when we have a decision to build, it makes sense to do FTTP.”

One way Embarq lowered its deployment costs was by outsourcing part of the job to a supplier, following the same philosophy that led the carrier to turn over operations of its legacy voice network to Nokia Siemens Networks this year. Corning now handles the installation of Embarq’s fiber, while Embarq deploys the associated electronics. This way, the carrier addressed what was one of the most expensive aspects of FTTP: splicing fiber in the field.

In turning to Corning, Embarq also gained fiber expertise it didn’t have in-house as well as the institutional knowledge required to make better contracts with home developers.

“You can’t expect your own copper experts to do the super-efficient engineering and planning you need to make it make economic sense,” Hansen said.

Meanwhile, the carrier also simplified its internal managerial organization, clarifying roles and responsibilities, which streamlined the process.