Cost-benefit Analysis of Fiber-optic Co-deployment with Asian Highway

KT’s Contribution to APIS

Cost-benefit analysis of Asian Highway with utility corridor

Cross-sectoral synergies promotion in co-deployment of infrastructure

To be completed by February, 2018

To conduct detailed research in improving broadband connectivity for target countries.

Three (3) Potential AP-IS Deployment Route Types

Case 1. Route on existing highway(s) with ducts

Study on duct availability and lease costDuct

Need further research

Case 2. Route on existing highway(s) without duct

Aerial fiber optic cable deployment incl. facility sharing option

Case 3. Route without existing highway, so need to build one

Duct co-deployment along with highway construction

Need further research

Scope of work

Facility sharing between sectors

5. Pay for duct-lease

3. Agreement by contract

4. Provide ducts

Telecommunication Business act

* Authorities in charge of construction, operation and management of roads , railroads, electrical facilities, telecommunications circuit facilities

Korea Case Study

Case 1. Route on existing highway(s) with ducts

Duct

Existing highway(s)

Framework act on National Informatization

Telecommunication sectors

1.Request duct-lease

2. Feedback (within 3 weeks)

Transportation authorities*

Ministry of ICT

Infrastructure co-deployment

among telecommunication sectors

1.Recommned for co-deployment

2. Feedback (within 3 weeks)

Telecommunication sector

Telecommunication Business act

Council* among

telecommunication sectors

3. Co-deployment

4. Operation and maintenance

No duct

Korea Case Study

Case 2. Route on existing highway(s) without duct

Duct co-deployment between sectors

3. Consultation

4. Agreement by contract

5. construct, operate and maintain

Framework act on National informatization

Telecommunication Business act

Telecommunication construction act Road act

Council* between sectors

Facility construction Operation and maintenance Cost, etc.

Korea Case Study

Case 3. Route without existing highway, so need to build one

Transportation authorities*

1. Notify new highway plan

2. Request construction ducts

Telecommunication sectors

A construction standard

for utility corridor

Global examples

Case study

Separate deployment

Co-deployment

Comparative study

Generalization

Cost-benefit analysis1

Pros/cons by

each stakeholder

Issue handling model

Cost compensation model

Pros/cons research2 3

1 Target country selection

• Cambodia• Laos• Myanmar• Viet Nam

2 Prerequisite study

• Site survey

• RFP analysis

• KT’s global reference

3 Calculation

• Unit cost

• Cost-benefit

analysis

4 Generalization

• Cambodia

• Laos

• Viet Nam

PPP*

1 2 3 4

• Site survey( Nov. 21 ~ 24)

Cost-benefit analysis for CLMV Country

January 15, 2018

MethodologyCost-benefit analysis1

* PPP: Purchasing Power of Parity

• Geographical features: plain, mountain, bridge

• Geological features: soil, rock, asphalt, concreteEnvironment

A

Infrastructure status

• Duct: trench depth, # of ducts

• Distance between manholes

• Fiber optic cable (FOC): # of core

B

Materialspecifications

• Duct, manhole, FOC

C

Cost • Labor cost: civil works, FOC installation

• Material cost: duct, manhole, FOC

D

Regulation • Regulation on co-deployment

• Network facility sharing scheme

E

2. Prerequisite study

Reference for Prerequisite Study

* Can assume unit cost based on MPT project in Myanmar & KT’s global experience

Reference:

IT infra network expansion project in Myanmar (EDCF, 2016 ~ 2020 )

i. Site survey

• November 21~ November 24, 2017

ii. RFP analysis from MPT*

• Requirement for civil work

• Technical specifications

iii. KT’s global experience

• More than 2,000km deployment in

Myanmar

*MPT: Myanmar Post & Telecommunication

Soil 95%4

%

1

%

Rock Asphalt

Duct deploymentcost calculation

Concrete

0.1%

Plain 94.5%

Bridge

1.3%

Geological features

Geographical features

Study Result

• Geographical features: plain, mountain, bridge

• Geological features: soil, rock, asphalt, concreteEnvironment

A

4.2

%

Mountain

DuctTrenchdepth

(from ground level)

1500 mm

# of ducts1 direct burial,

1 duct-housing

ManholeDistance between manholes

1 km

FOC # of core48 core

MPT RFP criteria

2 way duct recommended

KT global experience

96 core30% 70%

KT global experience

KT global experience Cost calculation

Infrastructure status

• Duct: trench depth, # of ducts

• Distance between manholes

• Fiber optic cable (FOC): # of core

B

Study Result

Loose tube

FOC

PVC FC

Manhole

Iron

Duct

Site casting Concrete Polymer Concrete

PVC FC: Polyvinyl Foam Chloride Polymer

GeographicalCategory

BridgePlain

Cost calculation

Materialspecifications

• Duct, manhole, FOC

C

HDPE

HDPE: High-Density Polyethylene

Mountain

Study Result

FOC Pulling

FOC Splicing & termination

FOC test

Civil work FOC installation

Excavation & backfilling

Installation duct

Pavement

Labor cost Material cost

Cost calculation

Ducts

Manhole

FOC

Cost • Labor cost: civil works, FOC installation

• Material cost: duct, manhole, FOC

D

Study Result

Data gathering from PTD* under MoTC

Network facility sharing

Co-deployment No regulation on co-deployment

License based: duration (15years)

- Fee: registration, initial, annual fee, etc.

Lease cost per unit: duct, dark fiber

Only for telecommunication sector

Need more information

* PTD: Post and Telecommunication Department

Issue handling model Cost compensation model

Telecommunications law (2013)

Licensing rules(2014)

Study Result

A construction standard

for utility corridor

Global examples

Case studyCost-benefit analysis1

Pros/cons by

each stakeholder

Issue handling model

Cost compensation model

Pros/cons research2 3

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