ricep5Premium
join:2000-08-07
Jacksonville, FL | Look at the numbers $1800 a sub is easy work financially.
30 year bonds are supporting that build out.
That's $60/year in allocated capital per sub. (not including depreciation, inflation, interest)
The average FIOS sub draws about $100/mo in revenue and with a average PM of 34% per sub monthly, we are talking approx $400 a year of revenue that can be allocated to bond payments per sub, per year.
Looking at it another way, Verizon can get a FIOS hit rate of 1 in 6 homes and still make their bond obligations.
I don't know who these short termers are who are complaining, but the numbers are looking very, very good for Verizon. It also exposes the fact that the margins in cable are so high now, that they are allowing new entries into the market.
While its easy to say the telco's have never invested in infrastructure historically, they actually have placed alot into it. Their fiber to the node build outs have been going on since the 80's when it became technically feasible (read: cheap) to deploy in the field. They just avoided last mile since it was too expensive. By adding video and internet to the equation, now it makes sense financially. |
| As the telcos' fiber deployments increase and the technology builds a good track record for reliability, they'll also be better positioned to provide services for businesses. AFAIK cable companies haven't had much success in this area. |
