Builders, Real Estate Developers and Fiber-to-the-Home

Virtually every large developer of single- family homes, condominiums and rental properties has an active program to add FTTH to new properties. Most are working on retrofitting older properties as well.

What do the major players know that not all smaller developers realize? Michael Render of RVA & Associates estimates, on the basis of surveying home buyers and developers, that FTTH adds about $5,000 to the price of a home (see chart).

Nevertheless, some smaller developers were on the sidelines until recently. That's now changing. By mid-2006 it was clear that FTTH was economically viable in developments with as few as 100 single-family homes. As fiber costs have come down and copper costs have increased, the breakeven point has sunk lower and lower. It now costs about $800 to pass a home with fiber.