Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
clubs:
 ·Comcast
| reply to matcarl
Re: Raising Rates
said by matcarl  :They just raised the rates as of January of this year, now three months later they are going up again? No big surprise. Someone has to pay for all of that fiber. There was just an article about how it costs UTOPIA about $2300 to connect a subscriber. I'm sure Verizon's costs are similar.
So there's no way that they're making their investment back fast enough to please Wall Street if your customers are only paying $100 a month. That's two years to recover the cost to connect them and you haven't paid for any programming costs, HSI connectivity or telephony back-end.
This is why FiOS is considered a gamble, and why Verizon may well end up losing their shirt.
--
My opinions are my own. No-one else would want them! |
|
MrSpock29
join:2008-02-09
Hammonton, NJ
1 edit | said by Corydon :said by matcarl :They just raised the rates as of January of this year, now three months later they are going up again? No big surprise. Someone has to pay for all of that fiber. There was just an article about how it costs UTOPIA about $2300 to connect a subscriber. I'm sure Verizon's costs are similar. So there's no way that they're making their investment back fast enough to please Wall Street if your customers are only paying $100 a month. That's two years to recover the cost to connect them and you haven't paid for any programming costs, HSI connectivity or telephony back-end. This is why FiOS is considered a gamble, and why Verizon may well end up losing their shirt. That opinion was once widely held a few years ago, when fios was first being rolled out, but it is not a widely shared opinion now. VZ (and all telcos) were always going to lose reg. phone customers, and they need to compete with cable. Now they can, with better infrastructure than cable. Considering their earnings were over a billion dollars this quarter alone, that is a long stretch from losing their shirt.
Further, with the stock up over $1 today, Wall Street is making their opinion known, although some of that is undoubtedly due to the wireless side. |
|
Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
Sweden
 ·Verizon FIOS
·Optimum Online
| reply to Corydon
said by Corydon :said by matcarl :They just raised the rates as of January of this year, now three months later they are going up again? No big surprise. Someone has to pay for all of that fiber. There was just an article about how it costs UTOPIA about $2300 to connect a subscriber. I'm sure Verizon's costs are similar. So there's no way that they're making their investment back fast enough to please Wall Street if your customers are only paying $100 a month. That's two years to recover the cost to connect them and you haven't paid for any programming costs, HSI connectivity or telephony back-end. This is why FiOS is considered a gamble, and why Verizon may well end up losing their shirt. It used to cost around $1500-3000/subscriber when they first started a few years ago... Recent estimates put the figure at $600-1000/subscriber passed.
-Tzale
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html
|
|
nasadude
join:2001-10-05
Rockville, MD
·Comcast
| and it will continue to get cheaper and cheaper to connect a subscriber, while the price for the service will get higher and higher.
wake up everyone, we are in a monopoly/duopoly situation; PRICES WILL NEVER GO DOWN AND THEY WILL ONLY BE STABLE OVER SHORT PERIODS OF TIME (3-6 months).
without competition, prices only go one way...UP |
|
Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
Sweden
·Verizon FIOS
·Optimum Online
1 edit | said by nasadude :and it will continue to get cheaper and cheaper to connect a subscriber, while the price for the service will get higher and higher. wake up everyone, we are in a monopoly/duopoly situation; PRICES WILL NEVER GO DOWN AND THEY WILL ONLY BE STABLE OVER SHORT PERIODS OF TIME (3-6 months). without competition, prices only go one way...UP Of course it is a semi-monopoly... Verizon has the best service available, they KNOW they can charge for it... However, I have seen the bandwidth / number of features increase in my area due to Verizon forcing the local cable co to really step up its game...
There IS competition, but just HOW MUCH competition is required to keep prices stable? I think it is a false hope to think more competition will keep prices lower... All these companies will just continue to raise prices when one takes the first jump.
-Tzale
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html
|
|
Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
clubs:
·Comcast
| reply to MrSpock29
I'm sure they've figured out ways to roll out their service for less and less as time has gone by.
It also helps that population density in Verizon's footprint tends to be fairly high.
On the other hand, the fact that no other telco in the US has shown much interest in the FTTH model shows that there are still considerable risks to the business model (though on the other end, Qwest shows the risks of doing nothing at all).
--
My opinions are my own. No-one else would want them! |
|
cwh
join:2006-05-14
San Antonio, TX | reply to Tzale
2 wire line tv, 2 sat tv and free OTA is probably about as much competition as you are going to get in a market. That is 5 options on where to spend your money. Not bad options if you ask me. |
|
Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
Sweden
·Verizon FIOS
·Optimum Online
| said by cwh :2 wire line tv, 2 sat tv and free OTA is probably about as much competition as you are going to get in a market. That is 5 options on where to spend your money. Not bad options if you ask me. I agree...
--
Neoconservatives (G.W.B) are not true conservatives. A conservative believes in defending the Constitution. First they ignore you, then they laugh at you, then they fight you, then you win. - RON PAUL 2008 »www.usconstitution.net/const.html
|
|
