1. Market Research
  2. > Materials
  3. > Metals Market Trends
  4. > The Copper decommissioning: costs and benefits for operators

The Copper decommissioning: costs and benefits for operators

  • October 2014
  • -
  • Analysys Mason
  • -
  • 28 pages

Operators and contractors need to understand how the copper network decommissioning process can benefit them.
Copper decommissioningCopper network decommissioning is becoming an increasingly significant topic as operators seek to replace legacy infrastructure with fibre and wireless alternatives. A number of operators are already proceeding with the process, which enables us to compare their different approaches.


This Viewpoint provides:
numerical analysis of the potential revenue benefits for operators from extracting and selling copper infrastructure and selling property that is no longer required after copper decommissioning
an examination of the costs involved
case studies of the copper decommissioning strategies of Bezeq, MGTS, NBN Co, Telstra and Verizon.

COMPANY COVERAGE

The following companies are featured in case studies in this Viewpoint.
Bezeq (Israel)
MGTS (Moscow, Russia)
NBN Co (Australia)
Telstra (Australia)
Verizon (USA)

Table Of Contents

The Copper decommissioning: costs and benefits for operators

Table of contents


About this report


Recommendations for operators, contractors and vendors


Copper decommissioning in favour of fibre or wireless can bring cost and revenue benefits for operators, but also several challenges


Exchange and copper sales have the potential to cover a significant proportion of the cost of passing homes with fibre


Generating profits from removing copper presents a number of challenges, but is potentially lucrative


Selling physical copper is likely to generate significant revenue for operators


Selling physical copper is likely to be highly profitable for operators


Operators can continue to generate revenue from selling old active equipment although pole disposal could pose challenges


Exchange sales will be the most significant benefit of copper network decommissioning


Potential from exchange sales depends on the local property market, but can easily extend to a double-digit percentage of annual fixed revenue


Verizon's copper decommissioning strategy involves migrating customers to FTTH in urban areas


Verizon's copper decommissioning strategy involves migrating customers to wireless in rural areas


Verizon's copper decommissioning strategy in rural areas could be hindered by regulation and low levels of take-up


Verizon has migrated significant numbers of copper customers to FTTH


MGTS's copper decommissioning strategy involves an extensive FTTH roll-out


MGTS has a number of strategic rationales for its copper decommissioning strategy [1]


MGTS has a number of strategic rationales for its copper decommissioning strategy [2]


MGTS has made significant progress with its copper decommissioning strategy


Bezeq has generated significant sums of money from sales of copper while deploying a nationwide FTTC network


Bezeq's profits from exchanges sales have outweighed those from sales of copper


Telstra's fibre-only exchange in South Brisbane demonstrates the company's technical capabilities


Telstra's ability to decommission copper is constrained by the limited coverage and low take-up of NBN


Telstra's ability to decommission copper will be boosted by the new NBN plans


Conclusions


About the author


List of figures


Figure 1: Summary of report coverage


Figure 2: Baseline assumptions on cost per premises by type of roll-out, a developed market, 2014


Figure 3: Ratio of total square metres of property to homes and businesses covered, before sales, by operator


Figure 4: Price for property disposals, by selected operator [Source: Analysys Mason, 2014]


Figure 5: Verizon's fixed coverage, USA, 2Q 2014 [Source: Analysys Mason, 2014]


Figure 6: Verizon's fixed LTE access prices and price per gigabyte, September 2014 [Source: Analysys Mason, 2014]


Figure 7: Verizon's copper migrations and cumulative migrations as a percentage of FiOS Internet open for sale homes passed, 1Q 2012-1Q 2014 [Source: Analysys Mason, 2014]


Figure 8: MGTS's DSL and GPON FTTH prices, July 2013 [Source: Analysys Mason, 2014]


Figure 9: MGTS's GPON FTTH subscriptions, 4Q 2012-1Q 2014 [Source: Analysys Mason, 2014]


Figure 10: Bezeq's profit from sales of copper, 2009-2013 [Source: Analysys Mason, 2014]


Figure 11: Bezeq's profit from sales of property, plant and equipment and as a percentage of its fixed-line profit [Source: Analysys Mason, 2014]


Figure 12: Timeline for migrating the South Brisbane exchange to FTTP [Source: Analysys Mason, 2014]


Figure 13: NBN Co's coverage and take-up rate, 3Q 2013-2Q 2014 [Source: Analysys Mason, 2014]


Figure 14: NBN Co's target coverage of premises in fixed-line footprint by technology [Source: Analysys Mason, 2014]























View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Copper Markets in the World to 2020 - Market Size, Development, and Forecasts

Copper Markets in the World to 2020 - Market Size, Development, and Forecasts

  • $ 20469
  • Industry report
  • September 2016
  • by Global Research & Data Services

The expansion of the global copper industry is forecast to reach 4.2% p.a. in the coming years. Between 2009 and 2015 the market increased with an average annual growth of 5.0%. Currently, copper sheets ...

Copper Sheet and Plate Markets in the World to 2020 - Market Size, Development, and Forecasts

Copper Sheet and Plate Markets in the World to 2020 - Market Size, Development, and Forecasts

  • $ 20469
  • Industry report
  • September 2016
  • by Global Research & Data Services

The report package Copper Sheet and Plate Markets in the World to 2020 - Market Size, Development, and Forecasts offers the most up-to-date industry data on the actual market situation, and future outlook ...

Copper Profile, Bar and Rod Markets in the World to 2020 - Market Size, Development, and Forecasts

Copper Profile, Bar and Rod Markets in the World to 2020 - Market Size, Development, and Forecasts

  • $ 20469
  • Industry report
  • September 2016
  • by Global Research & Data Services

The expansion of the global copper profile, bar and rod industry is forecast to reach 1.3% p.a. in the coming years. Between 2009 and 2015 the market increased with an average annual growth of 1.5%. Currently, ...


ref:plp2014

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.