FTTP on Demand Costs: Why High Prices Are a Barrier

FTTP on demand is one of those products that sounds like the answer to a problem but often turns out to be too expensive in practice. The concept is straightforward: if Openreach has not yet deployed full fibre to your premises, you can pay to extend their network to your building. But the excess construction charges (ECCs) associated with any significant civil works can make the real-world economics challenging.

The Cost Problem with FTTP on Demand

The fundamental issue with FTTP on demand costs is that they are entirely location-dependent and can swing dramatically based on a factor the business has no control over: how far your building is from Openreach's nearest existing full fibre infrastructure.

For a business 50 metres from an existing fibre node, FoD can be essentially free — the ECC is zero and you pay only the standard FTTP monthly tariff. For a business 800 metres from the nearest duct, the ECC can reach £5,000–£15,000. And for a rural premise 2km from any infrastructure, the figure can be £50,000 or more.

The survey process itself is not entirely straightforward either. It takes time, and the ECC quoted after the survey may differ from initial estimates. Businesses that enter the FoD process expecting a low cost sometimes emerge with a figure that changes their decision entirely.

ECC Cost Breakdown

The ECC covers the cost of the physical infrastructure work Openreach needs to perform to extend its network to your premises. This includes:

• Duct installation: laying new underground ducting from the nearest fibre node to your building
• Road opening permits: if ducts need to cross public roads or pavements
• Wayleave negotiations: permission to lay infrastructure across private land
• Chamber installation: where necessary for longer duct runs
• Fibre blowing: the installation of the fibre cable itself through the duct

Civil engineering work is expensive in the UK. Even a relatively short duct run of 300–400 metres crossing a road can cost several thousand pounds when road openings, permits and reinstatement are included.

Where FTTP on Demand Has Failed to Gain Traction

FTTP on demand has been available for a number of years but has never achieved widespread uptake. The reasons are fairly clear:

• ECCs are often prohibitive: For premises in areas that genuinely lack nearby fibre infrastructure (the businesses most in need), costs routinely exceed what the service is worth commercially.
• No cost recovery: Unlike a leased line where the carrier amortises infrastructure investment into the monthly tariff, the FoD ECC is a one-off payment by the business with no guaranteed terms protecting that investment if the business later relocates or the connection underperforms.
• Leased lines are often competitive: In many cases where FoD would require significant civil works, a leased line quotation comes back at a similar or lower total cost — with the added benefit of dedicated bandwidth and a meaningful SLA.
• Standard rollout is progressing: For businesses willing to wait, the standard Openreach FTTP rollout continues to expand, and in many cases the area will be covered within 12–24 months without any ECC.

When the Economics Do Work

FTTP on demand makes financial sense in a specific set of circumstances:

• The ECC is zero or very low (under £500), meaning Openreach can reach your premises via existing ducts
• Your broadband needs are modest and a leased line would be disproportionate
• You cannot wait for the standard rollout and the site is not viable for a leased line
• Your premises is genuinely close to existing infrastructure but happens to be on the wrong side of a deployment boundary

Alternatives to Consider Before Committing

Before agreeing to a significant FTTP on demand ECC, AMVIA recommends running parallel quotes for:

• Leased lines: Often more cost-effective where significant civil works would be needed for FoD
• FTTC or bonded FTTC: A shorter-term solution while waiting for FTTP to be deployed via the standard programme
• Fixed wireless or 5G broadband: Where fixed infrastructure is prohibitively expensive, radio-based solutions may be a viable interim
• CityFibre or other altnet FTTP: Check whether alternative full fibre networks have, or plan to have, coverage at your address