Best of the ISP-Lists

The Price of Laying Fiber

Members of the ISP-CLEC list discuss various benchmark prices-per-mile for laying fiber optic cable.

On the ISP-CLEC list in October, JH inquired,

"For laying fiber, is there a general cost per mile that can be used in a business plan to cover materials and construction costs?"

FG offered an official perspective:

"If you can get a hold of the FCC's Benchmark Cost Proxy Model (BCPM), you can peruse it for the base prices they use; it computes the cost of fiber runs among other things. Urban streetscapes are much costlier, of course, and Kansas ditch jobs are a lot cheaper."

Others proved that there is, in fact, a wide variety of prices:

[EL recalled] "I know someone who estimates telco build-out costs for a living, with over thirty years of experience. He indicated that $16,000 a mile is average for rural areas."

[RSB suggested] "It often makes more sense to lease dark fiber if available than lay it yourself. Intermedia gave me an estimate of $80,000 with a large standard deviation for terrain and right of way issues."

[SW posited] "How about $35 per foot (just over $180,000 a mile) which includes everything?"

[RL countered] "Fiber runs in a city business district more like $500,000 a mile."

[AS added] "I use $95 a foot (just over $500,000 a mile) to estimate build-outs when working with customers. The assumption is in a city environment, and $95 a foot is a worst-case estimate."

LY noted that self-reliance can make it all a lot cheaper:

"We have put up our own fiber, and have contracted it out; doing it ourselves is always cheaper. When contracted out, boring is usually $6 a foot; hanging on poles about $2 a foot on the high side; and trenching on straight easy runs can be less than $1 a foot not including the fiber. The prices you guys are throwing around are so high that it seems absurd; perhaps this is for downtown Manhattan?"

—End