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




Summer Analyst at J.P. Morgan

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Shubhang Jani

Shubhang Jani

Summer Analyst at J.P. Morgan

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