LEO satellite broadband versus FTTH: a TCO comparison for residential broadband

09 November 2026 | Research

Luke Wyles

Strategy report | PPTX and PDF | Satellite Broadband


"The share of households that can be served more cost-effectively by low-Earth orbit (LEO) broadband than by FTTH will double by 2031."

Low-Earth orbit (LEO) broadband capacity supply will grow by 10 times over the next 5 years, with the development of megaconstellations such as Starlink Broadband V3 and Amazon Leo. Telecoms operators and governments need to understand the improving availability and unit economics of residential LEO broadband, so they can make informed decisions on investments in rural fibre coverage.

Information included in this report

  • A comparison of the current and future costs of LEO satellite services against the cost of fibre-to-the-home (FTTH) services, based on a total cost-of-ownership (TCO) analysis
  • An analysis of how FTTH deployment costs vary across different countries and how these differences affect the relative attractiveness of LEO broadband
  • An assessment of government subsidies for fixed broadband services, and the potential role for satellite connectivity in addressing coverage gaps
  • An overview of the current ARPU range for LEO broadband and how this range is likely evolve

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Author

Luke Wyles

Analyst, expert in space and satellite