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LAN as an Alternative to Active Ethernet or PON
Posted on 02.19.06

Ethernet-based local area networks (similar to those found in offices) are being utilized in Hong Kong to offer 100Mbps service to residents of high-rise apartment buildings. City Telecom charges USD 25/month for the service:

City Telecom had already installed Ethernet jacks in 1.2 million homes. The company regrouped by wiring each building to a fiber-optic trunk line, which in turn connected to the Internet. The result is a citywide version of the local area networks found in many corporate offices. Wong says City Telecom spends $130 to wire a new dwelling–roughly half the cost of a DSL or cable-based hookup .

The $130 installation cost is ~15% of the installation cost of a PON-based solution. This to me seems like a disruptive technology. Will LAN based access be a viable competitor to PON and Active Ethernet for multi-dwelling units?

More on Active Ethernet vs. Ethernet LAN for Access here.


Filed under: New FTTH Rollouts and Technology
Comments:

2 Comments »

  1. The LAN alternative being utilised in HK is Active Ethernet as opposed to a PON offering….

    Comment by Jimbob — February 19, 2006 @ 1:48 pm

  2. I would suggest the $130 is the cost of wiring up a single Cat5 data point to a basic layer2 switch in the basement, a simple task in a high rise building. No Smarts at the customer’s home, just a RJ45 data point.

    Cost of deploying 100Mbps to each appartment in a high rise is much cheaper than deploying to a single dwelling environment in the suburbs. That’s why its 15% of the cost of PON.

    A quick calculation its about $100 to wire a data point (including labour) and about $35 per Ethernet port on a 48 Port 10/100 Dlink/Linksys/other-cheap-switch

    Comment by Stephen Davies — February 20, 2006 @ 5:10 am

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