Techno-Economics on Implementation of FTTH Network for Broadband Services Setiyo Budiyanto Department of Electrical Engineering Universitas Mercu Buana Jakarta, Indonesia sbudiyanto@mercubuana.ac.id Rahayu Kartika Dewi Department of Electrical Engineering Universitas Mercu Buana Jakarta, Indonesia rkdewipane@gmail.com Lukman Medriavin Silalahi Department of Electrical Engineering Universitas Mercu Buana Jakarta, Indonesia lukman.medriavin@mercubuana.ac.id Fajar Rahayu I. M Department of Electrical Engineering Universitas Pembangunan Nasional "Veteran" Jakarta, Indonesia fajarrahayu@upnvj.ac.id Freddy Artadima Silaban Department of Electrical Engineering Universitas Mercu Buana Jakarta, Indonesia freddy.artadima@mercubuana.ac.id Abstract— Globally, the increasing need for the Information and Communication Technology (ICT) Industry is experiencing very rapid progress, especially in broadband telecommunication technology. With this technology, it is easy to exchange information between one another even though it is at a great distance. So far, high quality data speeds at affordable costs and without limitations. To improve the quality of service so that it is better to modernize access transmission, Modernization of the access network is performed by changing the copper cable network to a Fiber optic cable. Fiber optic cable is able to carry a larger user capacity, therefore this research will discuss Techno-Economics on the Implementation of Fiber To The Home (FTTH) Network for Broadband Services. Where this is perfomed to see the feasibility of investing in the construction of fiber optic network infrastructure in Fiber To The Home (FTTH) profitable or not for the company. This study uses techno-economics methods. The results showed that the Net Present Value (NPV) obtained was Rp. 189,393,209 with an Internal Rate Return (IRR) of 20%, the Net Benefit value obtained was 1,389 and the duration of the payback period was 2 years and 9 months. Based on these parameters, it can be seen that the investment is feasible to continue. Keywords— Techno-economics, Fiber Optic, Gigabit Passive Optical Network, Net Present Value, Feasibility, Internal Rate Return I. INTRODUCTION The Information and Communication Technology (ICT) industry globally is experiencing heavy pressures, income growth is decreasing and marginal provitability is being eroded. This industry has shifted significantly into the digital era. This business change is inevitable. The growth of data service subscribers in the last five years has led to even greater development of network infrastructure. The increasing need for communication causes Information and Communication Technology (ICT) to progress very rapidly, especially in broadband telecommunication technology. With this technology, it is easy to be able to exchange information between one another even though they are located at very long distances, with quality data speeds at affordable costs and without any limitations. To improve the quality of service so that it is better to modernize access transmission, Modernization of the access network is performed by changing the copper cable network to a Fiber optic cable. TABLE I. GPON CAPACITY IN THE AREA CLUSTER Based on existing data, the population growth in South Tangerang area is 1,747,906 people which is increasing [6]. Where, one of the cities that is developing very rapidly which leads to become a metropolitan city. With this, the demand for fiber optic networks continues to grow. Fiber optic network is a solution where in addition to fast speed, reliable network and large capacity obtained in Table 1. is data from PT Telkom Indonesia on the construction of the Fiber To The Home (FTTH) network in Anthea Cluster, Lengkong- South Tangerang. In Gigabit Passive Optical Network (GPON) for 1 Optical Line Terminal (OLT) there are 14 module ports in it, 1 Optical Distribution Cabinet (ODC) can accommodate a maximum of 288 cores. The Anthea cluster uses Optical Distribution Cabinet (ODC) with a capacity of 144, Fiber Optic Feeder Cables 24 cores with 112 registered users. At one core, four Optical Distribution Points (ODP) can be built, in investing in the construction of fiber optic network infrastructure using Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) initial capital. So that we need an economic study to discuss this problem in accordance with the length of the working device, which is 5 years. This is expected, so that the investment a company will make is appropriate and in accordance with what is expected. In this study, a comprehensive analysis will be carried out without any subjective factors to overcome these problems and meet the increasing needs, it is necessary to plan for infrastructure development that can meet service needs.   148 2020 IEEE International Conference on Communication, Networks and Satellite (Comnetsat) | 978-0-7381-2517-6/20/$31.00 ©2020 IEEE | DOI: 10.1109/Comnetsat50391.2020.9328977 Authorized licensed use limited to: Universitas Indonesia. Downloaded on January 29,2021 at 07:34:30 UTC from IEEE Xplore. Restrictions apply.