sbiddle:
Which is exactly what will be happening in NZ if the existing Telecom FTTN network is used as a stepping stone for FTTH.
Getting fibre to a node end cabinet is the easy part - this has been happening throughout the country for the last few years as part of the FTTN project.
Getting that fibre from the node to the house is the costly part.
Yes and no. I think it depends (rather significantly) on your area. I have 2 roadside cabinets within 250-300m of my house, both cabinets are physically on the same block.
In my area I would have the option of aerial fiber. This obviously is not the case everywhere but it could theoretically bring the overall deployment cost down. However, in other areas we would surely have to stick to the underground to get people connected. How much this would cost would depend rather a lot on the results of the pilot and our first experiences with digging.
With that in mind, Telecom's fibre should (in theory) be adequate to provide the needed services. But if access to that fibre is in any way hampered (as I believe it is now, with that whole 32k per user issue that has been mentioned once or twice) - that will screw up the whole thing.