Alpine
Premium
join:2000-01-11
Atlanta, GA
| Cherry-pick away!
It's known as "Business Strategy 101." Build to the most profitable areas first. Nothing wrong with that.
Just like cable, over the years they'll keep expanding into new areas to continue gathering market share.
And haven't we seen recently what the anti-"redlining" lobby has done for housing loans? A bunch of sub-prime borrowers (and the idiot lenders lending to them) destroying the housing market. Obviously broadband and TV aren't on that kind of importance level, but so-called "redlining" and "cherry-picking" aren't necessarily as evil as their opponents make them out to be. |
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gaforces
United We Stand, Divided We Fall
join:2002-04-07
Santa Cruz, CA
1 edit | "Necessarily," nice disclaimer there but effectively you said nothing but advocation of greed. |
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BigPete82
@qwest.net
| said by gaforces  :"Necessarily," nice disclaimer there but effectively you said nothing but advocating greed. Advocating greed? What makes it greedy for a company to not want to deploy services to an area that will give it little or no return on investment? TV and Internet are not a right. Typical product of the entitlement society... |
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jaminus
join:2004-10-14
Arlington, VA
| reply to Alpine
Good point. What's the logic in demanding that Verizon lay fiber in parts of the city where most people won't even sign up? Some neighborhoods simply won't have enough uptake to make FiOS profitable. so Verizon must make the money back elsewhere by charging higher prices.
The main result of these absurd anti-redlining statutes is that Verizon deploys FiOS slower and in fewer cities than it otherwise would.
But for idiotic city council members forcing Verizon to jump through hoops just to provide a service that people desire, I bet FiOS would now be available in many more cities. Even if Verizon skips your neighborhood at first, moving a couple miles to a home wired for Fiber is much easier than relocating cities. |
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gaforces
United We Stand, Divided We Fall
join:2002-04-07
Santa Cruz, CA | reply to BigPete82
I'll answer your questions with my own since it's obvious you dont want to see my answers.
Why cant Verizon be happy with 20% profits instead of 50+%. |
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Alpine
Premium
join:2000-01-11
Atlanta, GA
| reply to gaforces
said by gaforces :"Necessarily," nice disclaimer there but effectively you said nothing but advocation of greed. Since when are TV and internet providers charities? They're in it for the money, pure and simple. Is that some sort of surprise in a capitalist society? |
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N3OGH
Bear patrol must be working like a charm
Premium
join:2003-11-11
Philly burbs
 ·Verizon FIOS
 ·Verizon Online DSL
| reply to gaforces
Why can't Verizon be happy with 10% profits instead of 20%?
Why even 20%? How about 10%?
While we're at it, why 10%? How about 5%?
Wait a second. Why should an evil company like Verizon make ANY profit? They should serve the public good and simply break even!
That's a slippery slope you're heading down....
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Petty people are disproportionably corrupted by petty power… |
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BigPete82
@qwest.net
| reply to gaforces
said by gaforces :I'll answer your questions with my own since it's obvious you dont want to see my answers. Why cant Verizon be happy with 20% profits instead of 50+%. I don't think you even know what you are talking about. Verizon's profit margins are 6.5%
»finance.yahoo.com/q/ks?s=VZ
Let the big kids have a real discussion, mmmm k? |
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SHABAZZ
join:2008-07-13
Seattle, WA | reply to Alpine
Actually mortgage backed securities caused the housing problem. There have always been prime and subprime mortgages. This is just the first time they were bundled and flipped. |
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jaminus
join:2004-10-14
Arlington, VA
| reply to gaforces
Less profit usually means less investment. Verizon reinvests a substantial portion of its income in network buildout, so 20% profit means less buildout. Plus it's not like FiOS is even profitable in the first place -- over $1000 per home with no guarantee the owners will even sign up is a pretty big bet to make.
Plus, the more profit FiOS makes, the more comfort shareholders will have with even more investment in fiber. |
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gaforces
United We Stand, Divided We Fall
join:2002-04-07
Santa Cruz, CA
1 edit | reply to BigPete82
I am not that gullible to believe that figure due to all the tax breaks and loopholes in the tax code for corporations.
Those numbers are also deducting the cost of upgrades/fios deployment which is a short period of time compared to the returns in the future. |
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BigPete82
@qwest.net
| said by gaforces :I am not that gullible to believe that figure due to all the tax breaks and loopholes in the tax code for corporations. Buddy... net profit is net profit. A simple search on google shows that net profit includes everything from expenses to profits AFTER tax (which would include all those "generous" loopholes you think all these evil corps are getting). |
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gaforces
United We Stand, Divided We Fall
join:2002-04-07
Santa Cruz, CA | It's creative bookkeeping ... pal |
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BigPete82
@qwest.net
| you are delusional... if they are getting creative about anything, its about how high their profit margin is, not how low it is. Shareholders want to see that number as high as possible, they surely aren't cooking their numbers for people like you who think they are nothing but greedy pigs. |
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Richard B
Fur It Up
join:2007-06-22
Portland, OR | reply to Alpine
beat me right to the punch. |
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Time Fire
join:2008-06-05
Philadelphia, PA
 ·Comcast
| reply to jaminus
said by jaminus :Good point. What's the logic in demanding that Verizon lay fiber in parts of the city where most people won't even sign up? Some neighborhoods simply won't have enough uptake to make FiOS profitable. so Verizon must make the money back elsewhere by charging higher prices. Who says it's a matter of people not signing up? I think if FiOS actually came to Philadelphia sans cherry picking, A LOT of Comcast customers would make the switch, but how much money will Verizon lose once many of those said customers go into a disconnect status because they haven't paid their bill in two to three months, or that these customers couldn't afford the sticker shock of their first month's bill? But hey, that's life...that's what Comcast is already dealing with, so if Verizon wants to come to the party, then they should at least be prepared for all the people in attendance.
Or if they want to service to only affluent neighborhoods, then put a disclaimer in their ads that states "not for people who make less than X amount of dollars....and live in X part of town." |
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N3OGH
Bear patrol must be working like a charm
Premium
join:2003-11-11
Philly burbs
·Verizon FIOS
·Verizon Online DSL
| reply to gaforces
said by gaforces :It's creative bookkeeping ... pal That's right. No one can trust those evil corporations MAAAAAAAANNNNNNNNNNN!
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Petty people are disproportionably corrupted by petty power… |
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jaminus
join:2004-10-14
Arlington, VA
| reply to Time Fire
If Verizon thought it could make a profit by laying fiber to a certain neighborhood, it would do it. Maybe not right off the bat, but it'd happen. Verizon obviously will make errors sometimes in assessing demand, but given how much experience VZ has in Fios subscriptions I bet their guesses are pretty much on-target.
Comcast customers who actually pay their bills are getting screwed by the city, too. But that's hardly a reason why Verizon should have to lay fiber in areas where people don't even pay the bills on time. |
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Sammer
join:2005-12-22
Canonsburg, PA
| Cherry-Picking argument is stupid in this case!
said by jaminus :If Verizon thought it could make a profit by laying fiber to a certain neighborhood, it would do it. Maybe not right off the bat, but it'd happen. Verizon intends for their FiOS network to eventually replace their copper network in the Philly metro and other metropolitan areas. Verizon doesn't want to maintain the copper forever so that means FiOS will eventually reach every place in Philly that Verizon's copper phone lines do now. Now I wouldn't be surprised if Verizon cherry-picked in rural areas but that doesn't apply to Philly. |
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gaforces
United We Stand, Divided We Fall
join:2002-04-07
Santa Cruz, CA | reply to N3OGH
Re: Cherry-pick away!
Is the fox evil because it eats the chickens? or a wolf sheep? |
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