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sensualpoet

join:2004-09-19
Toronto, ON

reply to VideoR123

Re: U-Verse

At $5 billion for 17 million "homes passed" that's around $300 per (potential) customer. That's actually not too bad. There are additional costs to make each connection -- including 1 or 2 guys doing a 4 or 5 hr install and the hardware that goes into the home.

At one point this was closer to $1000 per home passed, so this is a significant improvement.

It's still hard to figure the benefit to AT&T; this is definitely a long-term investment and several years before it pays off.

$130/mth less amortizing the hardware less amortizing the install costs less paying the programming for the TV content less paying Yahoo! for the Internet services ... it doesn't leave much room for "profit".

At 150,0000 customers so far, they must be looking at at least $20,000 per customer to date. This baby better scale big-time if they are ever to make back their investment.

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