As high-speed internet access becomes something of a basic necessity in homes and businesses, the global push for fiber network expansion has been significant in recent years. 

Despite large investments and ambitious rollouts, lower-than-expected penetration rates leave operators struggling to meet homes passed (HP) and commercial connection targets. The gap between planning and actual uptake highlights the importance of rapidly converting homes passed into paying customers; not just of building networks. To remain competitive and profitable, operators must find ways to accelerate network deployment and customer acquisition. 

Penetration rates and network buildout: the challenges

Delayed construction, regulatory hurdles, and consumer inertia have all contributed to slower builds. Equally, over-building strong gigabit-ready incumbents by lesser-known Alt-nets has diluted market share with tougher-than-expected customer acquisition rates, impacted by a lack of brand equity. According to industry data, the percentage of penetration rates are single-digit figures in certain areas – far below operator and investor expectations. 

Fiber build and customer connections: strategies for acceleration

To address these issues and build fiber networks faster while driving customer connections, operators can adopt several key strategies. 

1. Build like a network owner, not just to sell: Some early investment models focused on ‘build-to-sell’ business cases. HP was the KPI of choice for short- and medium-term investors, and was closely tied to Cost per Premises Passed (CPP) for assessing ROI and initial valuation of assets for resale.  

Yet focus on HP and CPP proliferates a ‘quick win’ approach. The effect is increased overbuild in densely populated urban areas where geographical proximity to fiber infrastructure offers maximized service reach. Compared to networks in more suburban or rural areas, the ultra-low urban CPP presents a much more attractive option to operators. But while this offers healthy consumer choice and price competition, overbuild dilutes the customer base and ultimately limits ROI, commercial viability, and asset valuation. 

2. Be first to market – not just fast to market: When assessing infrastructure valuation and ROI, a more important factor for operators who are looking to build, acquire or consolidate is ‘first mover advantage’. These operators seek to own and maintain reliable networks for the long run, in parallel to growing their revenue-generating units and customer base, while offering a value proposition that provides competitive differentiation.  

Furthermore, minimizing operational expenditure with robust, quality builds and driving economies of scale should be the priority over HP alone.  

3. Pre-empt permit approvals and building access: Obtaining permits for construction and access is one of the biggest roadblocks to fast fiber deployment. But operators can work proactively with local governments and regulatory bodies to streamline approvals and anticipate future needs.  

Multiple Dwelling Units (MDUs) provide their own unique challenge: building owners often have little incentive to support fiber transitions. To navigate this, operators should invest in early community engagement, and recognize that resident and owner associations are key to streamlining access and wayleave approvals.  

4. Mobilize existing infrastructure: Using poles, ducts, and other existing utility infrastructure assets significantly speeds up fiber network deployment. In cities where regulatory approvals can be slow or where space can be limited, taking advantage of utility poles and community buildings for aerial fiber can be a game-changer. This minimizes the need for digging and trenching while accelerating timelines for passing homes. 

However, access to third-party infrastructure is a case-by-case approach and doesn’t offer a catch-all solution. Equally, operating options, such as sewers, can present unfamiliar, harsh and costly environments with demanding Health & Safety requirements. Indeed, risks versus rewards must be balanced carefully against other project options. 

Learn more about the Technetix remote-OLT designed specifically to speed up deployment in hard to reach areas.

Remote OLT

Learn more about the Technetix remote-OLT designed specifically to speed up deployment in hard to reach areas.

Remote OLT

Learn more about the Technetix remote-OLT designed specifically to speed up deployment in hard-to-reach areas.

Remote OLT

5. Modular and scalable network designs: Focusing on high-demand areas first and building out incrementally ensures quicker ROI through efficient scalability and agility to react to demand changes in real-time. Pre-connectorized fiber solutions speed up installation and reduce deployment time and cost.

See how Technetix provided a scalable solution to optimize Virgin Media’s network build here.

6. Simplify the customer connection process: Beyond fiber network build, connection switchover time and lengthy, complicated processes can disincentivize customers to make the leap over to fiber. Optimized onboarding processes, reduced installation costs, and incentives – such as free installation or introductory discounts – can be a powerful consumer motivator. Furthermore, automated service provisioning and self-installation kits can streamline the process, reducing the time from order to activation. 

A balanced view on network deployment speeds

The temptation to push fast network builds should not come at the expense of sustainability or long-term network reliability. Hurried builds can give rise to inefficiencies, poor-quality installations, or network outages that harm customer satisfaction and increase operator costs. To mitigate variables around customer penetration rates, strategic, phased approaches to fiber deployment, that prioritize high demand over high-density areas, can strike a balance between quick builds and high-quality, profit-making networks. 

Author – Phil Scott, Chief Sales Officer, Europe

Phil is Technetix’ Chief Sales Officer, Europe, and lives in Cambridge with his wife and two young sons. When he’s not busy driving the company’s European footprint, he’s a Leicester City enthusiast and pretty exceptional cook.