Big Pete 82
join:2009-01-30
Corona, CA | reply to BF69
Re: Well not shocking
While profit may be profit, its also about ROI. If it takes 25 years for an area to become profitable, and there is very little profit when it does finally become profitable, its just not worth it. |
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Skippy25
join:2000-09-13
Hazelwood, MO
1 edit | Depends on how you look at that. Fiber is a very long term investment that requires a lot less maintenance and is cheaper in the long term.
If copper was seen as profitable 100 years ago, fiber can be seen as profitable now.
Keep in mind the telco's have received well over $200 billion dollars in incentives since 1996 to build this fiber network to everyone that THEY promised would bring 45Mbps symmetrical to everyone for around $40-$50 a month. To this date the only one really doing that is Verizon (though they arent near the price point) and I don't even think they have burned through the money they stole from the PA tax payers yet. |
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Stumbles
join:2002-12-17
Port Saint Lucie, FL | reply to Big Pete 82
With kind of reasoning, the Pilgrims would have never taken a boat ride. |
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BF69
join:2004-07-28
Camden, TN
| reply to Big Pete 82
said by Big Pete 82  :While profit may be profit, its also about ROI. If it takes 25 years for an area to become profitable, and there is very little profit when it does finally become profitable, its just not worth it. So who cares if it takes 25 years? Are they planning on being in business for only 25 years? What if the electric and phone companies had that attitude? I'm sure it took many years to break even. Gues what 50+ years later they're sure glad they took that 25 year loss now aren't they? How many tens if not hundreds of BILLIONS have they made? |
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Big Pete 82
join:2009-01-30
Corona, CA
 ·Verizon FIOS
| If it takes 25 years and the profit is high that is one thing, but if after 25 years the profit is still very low then it is not worth it.
Look at it from a personal perspective. Lets say you have $1000 dollars and you have a business model that will return you $25 profit after 2 years, is it really worth it? Probably not. There are probably a lot of other things you could be investing your $1000 dollars with that would return you a greater return on your investment.
I know it maybe hard for you to believe, but everyday people like you and I actually invest their hard earned dollars in companies like Verizon so that they can share in their profits in the form of dividends and a rising share price. If Verizon is going to be able to continue to grow their earnings (or keep it reasonably flat in this economy), they have to invest in business models that provide growth and profitability. Pouring billions into rural areas for very little return on investment down the road, IF ANY, is just not a sound business decision. |
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d_l
Barsoom
Premium,MVM
join:2002-12-08
Reno, NV
| reply to BF69
Let's say it's 25 years of losses or minimal profits and the ISPs break out into the big profits! I guarantee you there will be some government entity-political party at the end of that 25 years screaming about unfair windfall profits and how they should be taxed -- "for the children, for the suffering minorities, for climate warming, for climate cooling, for the empire some weaselly bureaucrat/politician is building/amassing". They will be touting all the fictitious and urban-myth subsidies the ISPs have supposedly received over all those years as justification for the profit grab. |
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BF69
join:2004-07-28
Camden, TN
| reply to Big Pete 82
said by Big Pete 82 :If it takes 25 years and the profit is high that is one thing, but if after 25 years the profit is still very low then it is not worth it. Look at it from a personal perspective. Lets say you have $1000 dollars and you have a business model that will return you $25 profit after 2 years, is it really worth it? Probably not. There are probably a lot of other things you could be investing your $1000 dollars with that would return you a greater return on your investment. I know it maybe hard for you to believe, but everyday people like you and I actually invest their hard earned dollars in companies like Verizon so that they can share in their profits in the form of dividends and a rising share price. If Verizon is going to be able to continue to grow their earnings (or keep it reasonably flat in this economy), they have to invest in business models that provide growth and profitability. Pouring billions into rural areas for very little return on investment down the road, IF ANY, is just not a sound business decision. Once again with your attitude ther would be places that still would not have electricity ot POTS lines. And the electric and phone companies would have lost out on hundreds of BILLIONS of dollars because of thie shortsited ways. And also this country would be even worse off. No way would could ever have been the world's #1 economy as long as we had parts that were wrose off than the 3rd world.
The fact is no one an say they WON'T make a huge profit after 25 years. Maybe an are now doesn't have a lot of people who know in 25 years it may have 20 times the population. I'l give you a perfect example.
Spirng Hill Tn. In 1980 it had less than 1000 people. In fact in 1940 the population was only 500. So there's no way one would predict that by 2007 the population would be 23,500. In fact just since 2000 the poulation has gone from 7100 to 23,500. So maybe in 2000 the "experts" would have guess that if the population only increased nominally it would only ever be break even proposistion. So they decided not to build out. Well look how wrong they are. And now it's going to cost more than it would have 8 years ago. Heck within a decade this town could easily be 50,000-75,000 people. You wouldn't have guessed that even just 10 years ago. |
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Big Pete 82
join:2009-01-30
Corona, CA
·Verizon FIOS
| You must know something the people running these multibillion dollar ISPs don't. Maybe you and a group of your buddies should get together and start up an ISP that serves these "highly profitable" rural areas and make billions. Trust me, you wouldn't have any competition... |
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BF69
join:2004-07-28
Camden, TN
| said by Big Pete 82 :You must know something the people running these multibillion dollar ISPs don't. Considering that these companies are losing money left and right. Hell I can buy a share of stock of Charter for a dime. So yeah maybe it do.
I mean it's funny that the music companies are multi billion $ companies and everyone seems to think they are run by idiots with the way the RIAA is. So are "normal" people sometimes smarter than CEOs? um yeah. |
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Big Pete 82
join:2009-01-30
Corona, CA
·Verizon FIOS
| Go try out your slam dunk business model and come back in 25 years and rub my face in it... Charter is about the only major ISP losing any money right now, Verizon, Comcast, At&t, Cox, etc are sailing right through this recession like it never happened. |
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