In the last few years, Diffraction Analysis has been vocal about the virtues of structural separation. It’s not because we’re getting paid to push that view (we’re not, sadly for us) or because we think vertically integrated markets are unfair (they are, but that’s a secondary issue in our opinion). It’s because our research has shown how inefficient vertically integrated markets are when it comes to building infrastructure and rewarding shareholders.
We’re currently undertaking a new piece of research that will evaluate much more precisely how inefficient the vertically integrated model is when it comes to deploying nation-wide fiber infrastructure. And we will demonstrate how current subsidy models just enable the deployment of infrastructure by non-infrastructure players.
Our early findings suggest that with little to no public funding an infrastructure only model would cover more territory with fiber to the home than is currently being deployed with heavy subsidies. At the FTTH Council Europe conference in Luxembourg, I presented those early findings and gave the elevator pitch in front of the camera: