Quote:
Originally Posted by gunner45
My belief is that the remaining HFC will get overbuilt by fibre as the savings for having an all-fibre network are huge. I think there is a pause on project Mustang as the CAPEX is big with little in the way of migration savings coming in yet, but keeping HFC going for longer than planned just increases OPEX. It's a tricky situation to resolve as the debt levels are so high with limited scope to either increase revenues or cut costs. And on the cost front we know that there are planned redundancies.
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The cost of debt has skyrocketed, and VM dont have the same benefits as other companies.
Companies like CityFibre had to rollout just to get a network to sell from as they come from nothing, Openreach had to do it as DSL was tapped out.
Docsis however can offer multi gig. So the business case isnt the same, and although there may well be ongoing cost reductions, that has to be balanced off with the cost of rollout, and especially if its funded by debt. I would be really surprised now if mustang ever gets completed, it makes little sense to do it, and if Netomnia deal is blocked, they got no cash for it.
They are rolling out multigig on DOCSIS which will be on majority of network by end of 2027, and have the deal now with Openreach.
This will keep them competitive for the foreseeable future (majority of customers dont care about jitter and upload speeds), for the few who do care, they can be put on OR FTTP, and those who move off net, can be put on OR FTTP.