Extensive fibre optic deployment on the line for France
They commented that 80% should be deployed by the end of this year – but that leaves the most difficult installations until last. The final pieces of the puzzle “will be the high-aerial infrastructure, and also the long-distance deployment for one or two homes, so very expensive for operators to deploy these kind of lines… and I think it won’t be done by 2022 because we have 5% of the network that we won’t deploy.”
Although the volume of installations is set to decline next year, revenue should remain high owing to the high costs of the final stages. Thereafter, maintenance costs kick in. “That’s profitable for companies like Circet but not for the operators, because it’s very expensive for them to deploy the network and, two or three years after, they have to do the maintenance of this network.”
Approximately 95% of all deployment is outsourced. “The only part of the deployment that is done with the telco operators is the engineering part… and then all the studies and technical parts are done with companies like Circet, Sogetrel or Solutions 30.”
“Right now, in France, Circet and Scopelec are both the well seen companies in terms of quality.” On the other hand, Solutions 30 has less national visibility, “because they have a lot of small companies and they outsource the jobs to those companies”.
To access all the human insights from Third Bridge Forum’s Circet – French telco O&M Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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