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by amazon_not 2924 days ago
5G might end up cheaper than FTTP, but I wouldn't get my hopes up on it being massively cheaper.

Higher frequencies will require either line of sight or very short distances to the small cell. The small cells themselves will incur costs both CAPEX and OPEX.

Basically the only part 5G will replace in a FTTP network is the drop. And that's where the density and the topography is cooperating. Whereas if you install a fiber drop, you'll be set for 20+ years and you won't have to install, maintain and power a small cell forever.

1 comments

You’re not just getting rid of the drop, but also the last 100 meters or so through the subdivision. Moreover, the drop and CPE install is 30-40% of the cost of deployment.

Also, fiber is not fire and forget. Just the other day a tree took out the cable to my house. Buried cable has less maintenance, but also much higher initial costs, increasing the cost advantage of wireless for the last 200m.

Like I wrote in the grandparent, it's a density thing. How many subscribers have line of sight (or close enough) for the 5G small cell to work? At some point it's going to be more cost effective to do FTTP.

The CPE cost is negligible. You can pick one up for $20. True, the drop will cost you, but it has a far longer lifespan than the small cell. It's not like the small cell, it's installation, permits, engineering, pole rental or tower, power, etc. are free either.

Like I stated earlier, 5G may be cheaper than FTTP. Or it may not. It may not even be available in your area due to insufficient density. Even if 5G is cheaper, it's not going to be massively more cheaper.