DaveNJ
No Fear
join:1999-09-01
New Jersey | reply to dcurrey
Re: Nobody company
There need to breakup the co's. Make the last mile, consumer based, so the resident owns the equipment. |
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DarkLogix
join:2008-10-23
Baytown, TX | that wouldn't work because then youd have people say um I don't want to and hold up the whole neighbor hood |
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bn1221
join:2009-04-29
Cortland, NY
 ·RoadRunner Cable
| reply to DaveNJ
90 million Fiber-To-The-Home (FTTH) overbuild for all of its 30,000 residential customers in the south-central and southern part of the state.
++++++++
That is 3 grand a pop (90million/30,000) JUST for phase one. That is a large capital cost. |
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DrModem
Premium
join:2006-10-19
USA
 ·EarthLink
 ·1and1
 ·PeoplePC
2 edits | And they obviously think it's worth it.
Also some math, if they charge $30/month it would take 8.3 years for each customer to have their base 3k share paid off. That's not all that much time, especially for a technology that's probably going to be around for decades and still be fast enough. And the bigger customers (IE the ones doing 100/100) will probably be getting charged way more than $30/month.
If they do speed packages right I'm sure they will be able to steal tons of customers from any Cable, WISP or other competition they have with minimal trouble. Especially if the cable is TW  |
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DaveNJ
No Fear
join:1999-09-01
New Jersey
·Comcast
·Patriot Media
| reply to DarkLogix
said by DarkLogix  :that wouldn't work because then youd have people say um I don't want to and hold up the whole neighbor hood Not the point, A last mile corp would offer to wire, or maintain the served area. The resident would lease the infrastructure from the corporation. |
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dcurrey
Premium
join:2004-06-29 | reply to DrModem
If they may be planning to abandon the copper plant that will save money in the long run.
Plus they may start offering TV in addition to phone and internet. |
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mtech
join:2002-10-20
Jonesboro, AR
| "Called Fiber-to-the-Home, Smithville’s all-new technology platform will give customers the ability to access the Internet, voice, and television and web based television services at a speed much faster than currently available to most residential customers anywhere in the United States—in rural or urban areas."
The press release announces that they are planning TV, phone and internet. |
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DarkLogix
join:2008-10-23
Baytown, TX
·Comcast Workplace
·Comcast
| reply to DrModem
ya $30/month would likely be a slower service
lets assume that they have a whole range of services and just to make it even with other offers out there lets say that their top pack is 100/100+TV+VoIP for $150 (ya just a random price but go with it)
lets say the averages endup being as though 50topend/50lowend
so lets say $90/month per house passed
so 2.7 years ROI
and as its fiber the biggest part of the cost is likely the fiber itsself so a greater speed upgrade would be easy |
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iansltx
join:2007-02-19
Golden, CO
·Comcast
·Qwest.net
 ·magicjack.com
 ·BeeCreek Communica..
·Sprint Mobile Broa..
| reply to mtech
Triple play bundles run around $100 to start, maybe $80 or $90 if it's really basic. Premium content and internet might edge the price up to around $150. $3k doesn't look so bad after all, especially when that's an alternative to people going elsewhere (to cable due to lousy DSL speeds, to cellular or cable for voice, to cable or sat for TV). It's a lot of new revenue due to the buildout... |
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wifi4milez
Big Russ, 1918 to 2008. Rest in Peace
join:2004-08-07
New York, NY
 ·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice
| reply to DaveNJ
said by DaveNJ :A last mile corp would offer to wire, or maintain the served area. The resident would lease the infrastructure from the corporation. There is nothing stopping any number of companies from doing that right now. I think the biggest hurdle is that its not really a viable business model at this point. The overwhelming majority of people are happy with their $20 DSL/Cable 'lite' tier, and if faced with the option of paying up to a few thousand dollars just for additional internet choices they wont do it.
The other major issue (as I have pointed out before) is that even assuming the entire neighborhood is wired, the nearest carrier hotel could be a few hundred miles away. The price for that longhaul circuit could easily run $50k or more (per month), depending on how rural the area is. Once you factor in the tremendous MRC the whole thing becomes a lot less palatable.
--
When you can't make them see the light, make them feel the heat.
-Ronald Reagan-
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morbo
Complete Your Transaction
join:2002-01-22
00000
clubs:
·Charter Pipeline
·AT&T Southwest
| reply to bn1221
said by bn1221 :That is 3 grand a pop (90million/30,000) JUST for phase one. That is a large capital cost. reasonable for a completely new system. cost is x2 or x3 as much as Verizon or AT&T. they don't quite have the buying or bargaining power of one of the entrenched telcos. |
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Rob23
@windstream.net | reply to DarkLogix
"Federal loan program (Stimulus bill includes 7.2 billion for broadband loans & grants)from the U.S. Dept of Agriculture " Thank You MR. PRESIDENT. |
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travelguy
join:1999-09-03
Santa Fe, NM
| reply to DrModem
said by DrModem :Also some math, if they charge $30/month it would take 8.3 years for each customer to have their base 3k share paid off. Unfortunately, I'm afraid you wouldn't do so well in a Finance 101 class. Your 8.3 year payoff doesn't take into consideration the cost of capital (i.e. the finance charge). Even at current interest rates, that's a significant amount of money. It also ignores the operating costs (both local & content) as well as installation & maintenance (truck rolls are expensive).
The good news is that you probably don't need a 8.3 year payback. Don't know what the standard depreciation schedule is for fiber in the ground, but I would imagine it's at least 20 years. That increases the financing costs, but reduces the monthly payment. |
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DarkLogix
join:2008-10-23
Baytown, TX
·Comcast Workplace
·Comcast
| as for operating costs I'm sure they already have an ISP so this is a preexisting cost
and who knows how they paid for it there is the possibility that they had a money pool maintained for just this use (unlikely but its possible)
and also I would think when they said 90mill it was more than just equ (I would guess its Equ+labor+advertising+employee training+ect) |
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Shack
join:2002-01-17
Bloomington, IN | reply to dcurrey
Re: Nobody company
That is exactly what thye are doing. Not sure what there TV offering is going to be, they don't share much, but it is planned. |
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Josh623
@cableone.net | reply to Rob23
Yes, they are using the USDA Rural Development Loan program to help fund all this. Looks like it will be a GPON system from CALIX. |
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kieranmullen
Premium
join:2005-12-12
Portland, OR
clubs: | reply to DaveNJ
I dont want to own my fiber opitc modem! I doubt they are cheap. |
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