Investing in Fiber to the X

Fiber Technology

  • Understanding Fiber
  • Understanding Fiber-to-the-X
  • Fiber-to-the-X Architecture
  • Superior transmission for broadband data (1 Gbps)
  • Scalable
  • Durable
  • Cost-effective in the long-run (not short-run)
  • Signals degrade over long distances due to electricity
  • Electricity is prone to natural environmental conditions
  • Interference as a result of electrical signals
  • Copper may corrode and result in high maintenance costs
  • Fiber-to-the-home (FTTH) / Fiber-to-the-premise (FTTP)
  • Fiber-to-the-building (FTTB)
  • Fiber-to-the-curb (FTTC)
  • Fiber-to-the-neighborhood (FTTN)
  • and many more…
The solid line represents fiber. The dotted line represents copper cables.

Strong Data Growth Drives Fiber Demand across Industries of all sizes

Data collected from BroadBandNow Research
  • Attractive entry-point for participation in growing global IP traffic and bandwidth.
  • A high-quality network that enables high-speed data across attractive established and growing markets.
  • High margins particularly due to initial high fixed costs and low distribution costs for end-users.
  • High Capex as a result of deploying and maintaining high-quality physical assets, but creates stronger barriers to entry.
  • Long-term contracts that enable recurring revenue along with cheap debt capital create a safe cushion for debt repayment.
  • Fiber/Telecom sectors are favored by debt investors because of high risk-aversion.
  • The horizontal nature of fiber infrastructure allows for a number of industries to be impacted, thereby supporting cross-border investments if desired.
  • Ability to achieve economies of scale — infrastructure that is deployed in a high-density area can promote a higher return on an investment (low marginal costs) relative to the high fixed costs.
  • Low churn
  • A rapidly growing industry with increasing EBITDA multiples
  • Significant dependencies on regulatory bodies can either allow for opportunity or impede growth in new or existing markets.
Stock data provided by Atom Finance
Provided by Meridian LLC

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Summer Analyst at J.P. Morgan

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Shubhang Jani

Shubhang Jani

Summer Analyst at J.P. Morgan

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