 BF69Premium
join:2004-07-28
Camden, TN | 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. so? back in the old days it wasn't uncommon to expect somethig to to ten years or more to break even. WOW 3 years and 4 months. Ok let's loo 20 years down the road. that 240 months. So that's 200 months X $50 a month or more. That's $10,000 per house. Now take it 50 years, 75 years. |
 baineschile2600 ways to livePremium
join:2008-05-10
Sterling Heights, MI
 ·Comcast
 ·magicjack.com
| Forgotten costs:
when i claimed the 4000/unit, it was more than just laying a peice of fiber to the house. that number is a culmination of many different variants: retraining techs, physical fiber, new testing, equipment, and the biggest cost of all (lost in this whole thread); the cost of tv. remember, providers PAY most networks for the right to broadcast them; espn is at the top of the list @ $3 per subscriber. viacom, disney, grints....verizon had to sign multi-year contracts with all of these companies
the cost of deals that verizon had to make was monumental, and not included in the 23billion they claimed was the investment; most of that was physical fiber, and onts. |
