Tzale
Proud Libertarian Conservative
Premium
join:2004-01-06
Sweden
 ·Verizon FIOS
 ·Optimum Online
| reply to Corydon
Re: Raising Rates
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
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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
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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 |
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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
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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
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cwh
join:2006-05-14
San Antonio, TX | 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. |
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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...
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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
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