These days, every developer or communications provider who has put forth the time and money to invest in building a Fiber to the Home (FTTH) community is downright gleeful. I mean it's like being the room with Santa Claus, Tommy Lasorda and Katie Couric. They're so peppy and perky it's sickening.
What are they so darn happy about? Apparently, having higher customer satisfaction, selling lots faster, offering a differentiated home, and making more money can make builders and developers happy! Who knew?
According to data presented during the FTTH Conference and Expo, developers estimate that the average parcel with an FTTH infrastructure will garner $5,500 more than a lot without a fiber connection. That jibes with information from Amy Westwood, director of technology for Celebration Associates in Orlando, Fla., who estimated during a panel discussion at the EHX Spring 2006 that a fiber-connected lot sells for an additional $10,000.
Some developers -- especially those constructing greenfield developments situated long distances from existing communications infrastructure -- are almost forced to run FTTH because their local phone company or cable company is resistant to helping them. If you don't build the headend yourself on site, residents won't have phone, TV or high-speed Internet service. In other areas, of course, cable and phone companies are leading the way in offering FTTH.
Meanwhile, FTTH's growth comes at a perfect time for developers seeking a way to differentiate their communities. The icing on the cake is that consumers are more aware than ever of the value and need for 'triple-play' services, which means developers don't have to twist the arms of builders to abide by the structured-wiring specs for the homes they erect in the community. Likewise, builders won't have to spend an arm and a leg on marketing materials to introduce and explain the technology/lifestyle benefits to prospective homebuyers. Finally, the additional HOA dues that play services is becoming just as acceptable to them as spending dues for landscaping and public-area maintenance.
However, once you've made the decision to run fiber in your greenfield development, there are still tough decisions to make:
What is your taste for risk/reward?It's higher risk (and a substantially higher front-end investment) to build and create a network on your own vs. partnering with telco or cable company.
Who will maintain the systems operations? Someone has to maintain the system, especially if you tack on a community intranet.
How much of an HOA dues increase can your residents afford? If you build and maintain your own FTTH network vs. partnering with a carrier, the costs have to be part of the monthly dues. The ratio of HOA dues to average mortgage needs to be considered.
Do you want to sign a preferred-partner agreement with a carrier?If you don't build it yourself, the local communications service provider will likely want you to sign an exclusive contract. Will prospective buyers be OK with a limited choice for their phone, TV and Internet service?
Can you afford to pay for private easements? Cable and phone companies have a big advantage in that they usually already have the necessary rights of way.
Whichever method you select, the optimism and excitement surrounding FTTH deployment is exactly what the industry needs right now.
What do you think?