FTTH adds 3.1% to home values says study

The Fiber to the Home (FTTH) Council Americas last week at its FTTH Connect 2015 conference released results of a study that indicates a gigabit FTTH connection can add up to 3.1% to the value of a home. That equates to an extra $5,437 on a typical home.

The study, conducted by Gabor Molnar and Scott J. Savage of the University of Colorado at Boulder's Department of Economics and Douglas C. Sicker of Carnegie Mellon University's Department of Engineering and Public Policy Institute for Software Research, uses the National Broadband Map and a nationwide sample of real estate prices from 2011 to 2013 to examine the relationship between fiber-based Internet services and housing prices. The study found that adding FTTH to a home raises its value 1.3%; upgrading the FTTH connection from 100 Mbps to 1 Gbps adds another 1.8%.

The study authors have compiled their findings into a whitepaper (download it). Their work follows an earlier study funded by the council that suggested that the presence of gigabit fiber-optic broadband is associated with higher per capita GDP.

"The evidence is mounting: Investment in fiber improves the economic performance of a community as well as its quality of life," said FTTH Council President and CEO Heather Burnett Gold. "Around the United States, leaders at the local level have started to think about how their community's Internet infrastructure is a catalyst for economic, educational, and governmental innovation."

"The benefits of all-fiber, ultra-high bandwidth networks are clear to people in communities where it is deployed," said FTTH Council Board Chairman Kevin Morgan, "Today's findings further validate our mission as an organization: to promote investment in and adoption of FTTH services throughout the country creating value for service providers and their customers. We're looking forward to working with more providers, communities, and leaders to make that happen."

For more information on FTTx equipment and suppliers, visit the Lightwave Buyer's Guide.