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MrSpock29

join:2008-02-09
Hammonton, NJ

reply to baineschile

Re: Not so fast

said by baineschile:

The average price to run FTTH is $4000 per home. Obviously, Fios is a great product, and delivers what the consumer wants.

What it means though, if the average fios arpu is $100, its going to take 40 months (of a customer not missing a payment or switching providers) to BREAK EVEN.

we wont know if fios is truly a sucessful investment for at least another decade....when they have significantly more penetration in larger cities.

if there is a discovery in the next few years that cable other copper telcos can take significant advantage of (e.g. 2ghz systems) at a low cost, then the fios investment wont look as pretty.
That MAY have been the cost years ago, but isn't even half that now.
You also forget that it is lower maintenance than copper, so money is saved on that end. It is also easier to upgrade. If you factored in all of the above, plus the fact that install costs are below half that now, you have a different story.

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