A Study on Cost-Benefit Analysis of Fibre-Optic Co-Deployment with the Asian Highway Connectivity

A Study on Cost-Benefit Analysis of Fibre-Optic Co-Deployment with the Asian Highway Connectivity

Wednesday, June 13, 2018
Public information and advocacy materials

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) Asia-Pacific Information Superhighway (AP-IS) initiative aims to provide seamless, affordable and effective broadband connectivity that minimizes the digital divides. In doing so, the AP-IS initiative focuses on four pillars, namely: connectivity; Internet traffic and network management; e-resilience; and broadband for all. In the connectivity pillar, one of the key issues recognized by ESCAP member States in promoting fibre-optic broadband network expansion throughout the region is infrastructure sharing. This includes co-deployment of fibre-optic broadband network along other utilities infrastructures (such as roads, railways, electricity grid, and gas/oil pipelines).

This report details the cost-benefit analysis of broadband co-deployment between the telecommunication sector and transport sector, and highlights methods for reducing time and costs in developing a broadband infrastructure. The report offers important policy insights into the merits of infrastructure sharing, which will assist ESCAP member countries in moving forward on regional dialogue in this area. As a result of the comparative study in Myanmar, the co-deployment of the broadband network (compared with separated deployment) has been estimated to save at least USD 7,379 per kilometre, and the percentage of cost savings has been calculated at 56.83 per cent. Most of the cost saving in co-deployment is derived from eliminating overlapping civil works such as excavation, backfilling and reinstatement during highway construction.

The pros and cons of co-deployment for different stakeholders have been analysed to affirm co-deployment benefits and synergies. Results show that the telecommunication sector will benefit from significant cost savings and avoid the duplication of civil engineering works in the deployment of a broadband network. The road sector will have the opportunity to generate new revenues by adding a mere 0.87 per cent investment cost to road construction. Governments can achieve economic and social benefits by implementing a broadband infrastructure quickly and cost effectively.To improve the mutual benefits of stakeholders, it will be necessary to coordinate cross-sector cooperation, encourage the sharing of facilities for effective national communications resource management, and manage rights of way concerning civil engineering works from the perspective of establishing a broadband network that covers the entire nation.
All in all, this report has estimated the cost savings from co-deployment, compared to separated deployment. When applied to the whole of Asia, the amount saved would be even greater. In addition, the pros and cons among stakeholders, issue handling in selected countries, and modelling of the investment cost compensation have been included to further demonstrate the benefits of co-deployment and facility sharing.


Cost-benefit analysis of fOC with Asian HighwayDownload