Lower Operational Costs
Increasing revenue from new services is only part of the value offered by the Alcatel-Lucent 7342 ISAM FTTU solution. Service providers are beginning to document the operational savings achieved with optical access networks. By using passive elements, the fiber- based Alcatel-Lucent 7342 ISAM FTTU solution delivers cost savings that can result in between 40 and 60 percent lower labor expenses compared with using existing copper networks. These savings are achieved in reduced subscriber contact associated with service orders, trouble reporting, outside plant operations, CO operations, and network operations. As shown in Figure 2, financial analysts see the opportunity to reduce longer term operating expenses with capital investment in FTTU.
The high degree of integration and the passive nature of the outside plant used in the Alcatel-Lucent 7342 ISAM FTTU solution greatly simplify network opera- tions. Your service provisioning can be largely automated because the network is designed to support a spectrum of services from day one, which is not the case in today’s copper networks. Services can be initiated and termi- nated by your subscribers, saving labor costs that can be used for other aspects of customer care, such as improv- ing customer loyalty. In addition, because multiple services are provided via a single network, customer care can be much more effective and offer more up-selling opportunities. This also decreases your churn, cutting back on marketing costs for individual services and order generation.
Figure 2. Incremental EBITDA from FTTU Build
Retained
9%
HSD
28%
Op. Exp.
Savings
45%
Video
18%
Source: ARMIS database and Bernstein Analysis
Alcatel-Lucent 7342 ISAM FTTU 5