JPLPremium
join:2007-04-04
Downingtown, PA
kudos:1 | reply to Dolgan
Re: Not so fast I agree that those savings are speculative at this point. How can they be anything but? They haven't happened yet. My point is that you can't just look at the cost side of the equation - there's another side to it as well. You can't just look at the upfront cost, and assume everything else stays the same. It doesn't. There will be savings to be had with maintenance costs - whether it's $1billion/year or not remains to be seen, but even at a fraction of that it's still a very substantial savings.
Likewise, operational costs for fios should be lower than copper as well. I mentioned the fact that the fiber is unpowered getting to your house, and the fact that verizon doesn't need to boost their signal like cable has to.
Yes, it will be a while before they recoup the cost of FiOS, but given its popularity (they added more TV customers than anyone the last 2 quarters, e.g.), I think they're going to recoup them faster than many of these analysts anticipate. One other number that isn't talked about is their penetration rate. If I recall correctly, I think it's hit something like 20% for their TV service. That's pretty astounding - it probably needs to be higher than that, but it's been increasing steadily as well. |
