tag:blogger.com,1999:blog-6695967.post542774766538811476..comments2023-10-02T08:59:02.620+01:00Comments on EuroTelcoblog: Value perceptionsJames Enckhttp://www.blogger.com/profile/17214581678192360980noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6695967.post-85477992365814959142013-03-14T11:55:13.842+00:002013-03-14T11:55:13.842+00:00Good to see you back blogging with an excellent an...Good to see you back blogging with an excellent and perceptive piece. <br />For many years the house price premium in Sweden was 3%-4% and nowadays its common for homeowners to spend £1000-£2000+ paying a local firm or a larger operator (inc the incumbent) to bring fibre to their area. That's a very long way in terms of customer perception from Sky's "free" broadband. There are plenty of DSL and cable promotions in Sweden of course but after a decade of fibering the customer knows the difference. If a fibre switchover were underway here the average UK consumer would also start to understand the difference after ~5 years or so I believe. There has to be enough of a demonstration effect but once its there the process will start to drive itself.Stefanhttps://www.blogger.com/profile/04693830398194206858noreply@blogger.comtag:blogger.com,1999:blog-6695967.post-906045041910451142013-03-13T11:58:57.284+00:002013-03-13T11:58:57.284+00:00Thanks all, and thanks, John!
The only example I...Thanks all, and thanks, John! <br /><br />The only example I am aware of today is the Communications Infrastructure Fund in the Netherlands, which is backed by a group of public sector pension funds. That said, so far they seem to have only taken on assets which are already built and generating cash flow. It looks like there is still a gap in the market in terms of someone willing to fund "build risk," though I think that will change over time as we have more positive examples of companies making it work. I think that, given the lack of yield available today in "conventional" investment classes, as well as the long asset life of fibre networks, it is still a natural fit for pension funds and insurance companies, but someone needs to write the first cheque!James Enckhttps://www.blogger.com/profile/17214581678192360980noreply@blogger.comtag:blogger.com,1999:blog-6695967.post-80227032465687479412013-03-13T09:31:32.247+00:002013-03-13T09:31:32.247+00:00Good to see you back again James.
On a somewhat...Good to see you back again James. <br /><br />On a somewhat related note, I think it was you who suggested quite a few years back that a natural investment backer for FTTH could be a pension fund that will take a much longer view of the ROI while still having deep enough pockets to take on the initial cost. Have you actually seen this model anywhere? Johnnoreply@blogger.comtag:blogger.com,1999:blog-6695967.post-92114990336966448542013-03-12T22:19:36.394+00:002013-03-12T22:19:36.394+00:00Great to see you back James!Great to see you back James!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6695967.post-89980524649394636492013-03-12T21:28:26.530+00:002013-03-12T21:28:26.530+00:00The house price premium was suggested by less than...The house price premium was suggested by less than a quarter of respondents, IIRC, so it's not a sea change.<br /><br />Anything related to the value of a house is expected to be recouped on selling it, with inflation on top, so someone saying they are prepared to spend £25k is implicitly saying they expect to get £30k back when they move on.<br /><br />We see housing as an investment, broadband as a post-tax household operating cost.PhilThttps://www.blogger.com/profile/17675583272641426292noreply@blogger.comtag:blogger.com,1999:blog-6695967.post-67592510635922687402013-03-12T16:34:42.383+00:002013-03-12T16:34:42.383+00:00Keep posting! We need the councillors and politici...Keep posting! We need the councillors and politicians in the UK to read this sort of stuff to counteract the brainwashing of the telcos who have been throwing all their million pound marketing budges at them! Its time for some honesty and truth, so keep telling it like it really is. <br />thanks!<br />chrischrishttps://www.blogger.com/profile/07574928297845542047noreply@blogger.comtag:blogger.com,1999:blog-6695967.post-6720684180647879422013-03-12T16:03:25.465+00:002013-03-12T16:03:25.465+00:00You're not alone in thinking that. I once figu...You're not alone in thinking that. I once figured out that the CAPEX needed to deploy fiber to an average NYC appartment was the equivalent of two weeks of rent of said appartment. Surely that should justify its installation alone as better broadband will make it shift faster between tenants and or slow the cycle of tenancy. <br /><br />That education sadly remains to be done. Ben Feltenhttp://www.diffractionanalysis.comnoreply@blogger.com