 jsz0Premium
join:2008-01-23
Jewett City, CT | reply to fifty nine
Re: Fiber optics are not cheap Fiber is actually pretty cheap. The prices today are far lower than what Verizon was paying when they started deploying FIOS. This not only goes for fiber optic lasers, fiber optic cable, but also splicing equipment, testing equipment and ONTs. The real cost is just the physical labour of installing it all which is something all service providers share copper, fiber or wireless.
I think what we're seeing with Verizon is that they've cherry picked most of the highly profitable customers/areas and to move forward they have to start making it very uncomfortable for those customers to leave (increased ETF) and have to increase rates to cover building out to less profitable areas where they won't see a return as quickly. A $1 increase for every existing FIOS customer helps pay for existing infrastructure investments and helps cover new deployments. In the case of video there's also increased programming fee's that they pretty much have to pass along to customers or they are simply making less money for providing the same level of service which is something most companies don't like doing. |
