Survey on Learning Curves and Economies of Scale for FTTH Equipment

This survey is now closed. Please see the author's resume or thesis entitled Networking Technology Adoption: System Dynamics Modeling of Fiber-to-the-Home for additional information. The thumbnails of the thesis aren't up yet, but an electronic copy can be purchased from the MIT libraries.

This survey is designed specifically to characterize the cost structure of FTTH equipment for use in a system dynamics model studying the interaction of industry, the consumer, and regulation in adoption of fiber-to-the-home.

Your cooperation is vital to the success of this study! Please answer the following questions as they apply to you. If you do not know the answer to a question, please give your best estimate. Answering of the questions is voluntary. You are not obligated to answer any question. The survey should take no more than 10 to 15 minutes to complete.

Please be candid and honest in your responses. We understand that you may have concerns about confidentiality. The survey is anonymous and several measures will be taken to ensure that your responses will remain confidential. Only the researchers named at the end of the survey will have access to the information requested in this survey. All analyses of the survey data will be presented in the form of aggregated statistics. No individuals or individual programs will be identified in the analysis or reporting of the responses. We understand that the success of any research depends upon the quality of the information on which it is based, and we take seriously our responsibility to ensure that any information you entrust to us will be protected.

What is the name of your company/organization?
What is the average cost of an ONT for the provision of FTTH service? $
What is the cost per port/user of central office equipment for the provision of FTTH service?

Please assume that the device is supporting its maximum number of users. For active equipment also include the per port cost of any remote terminal equipment. For passive equipment please include the per user cost of splitting devices between the central office and the customer if it is known. Do not include the cost of splicing or fiber optical cable.

$
If the price of triplexers/diplexers (whichever you use in your equipment) came down to $50, what would the average cost of an ONT be? $
What would the per port/user cost of central office equipment for FTTH service be? $

Please answer the following questions for customer premise equipment (the ONT). If you do not manufacture ONTs, please check the following box and skip to the section on central office/remote terminal equipment.

What percentage of current costs are:

fixed? %

variable? %

How does fixed cost change with the volume of ONTs produced (economies of scale)? Please give your best estimate of the percent change in fixed cost as your production output doubles. %
Please estimate your current yearly production volume of ONTs in units per year.
How does variable cost change with the total number of ONTs produced (learning or experience)? Please give your best estimate of the percent change in variable cost when experience in producing the product doubles. %
Please estimate your current cumulative production volume of ONTs. This is the total number of ONTs you have produced since production of the product line started.

Please answer the following questions for central office and remote terminal active equipment or passive splitters. Do not include the cost of fiber optic cable or splices. If you do not manufacture central office/remote terminal equipment, please check the following box and skip to the end of the survey and click on the "submit" button.

Please estimate your current yearly production volume of central office and remote terminal ports in units per year.
Please estimate your current cumulative production volume of central office and remote terminal ports. This is the total number of central office/remote terminal ports you have produced since production of the product line started.

If your cost structure per port/user for central office equipment is identical to that of the ONT, please check the following box and skip to the end of the survey and click on the "submit" button.

What percentage of current costs are:

fixed? %

variable? %

How does fixed cost change with the volume of central office and remote terminal ports produced (economies of scale)? Please give your best estimate of the percent change in fixed cost as your production output doubles. %
How does variable cost change with the total number of central office and remote terminal ports produced (learning or experience)? Please give your best estimate of the percent change in variable cost when experience in producing the product doubles. %

If you have questions about this survey, the objectives of this research, or would like a copy of the results, please contact:

Angie Kelic
Massachusetts Institute of Technology
77 Massachusetts Ave, Room N42-140U
Cambridge, MA 02139
Tel: (617)253-1436
Fax: (617)258-6176
Email: sly at mit dot edu

Thank you for your time!!