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iansltx

join:2007-02-19
Austin, TX
kudos:2
Reviews:
·Time Warner Cable
·Verizon Online DSL
·Comcast
reply to patcat88

Re: If one ISP balks though...

Fortunately, I'm not talking about NYC. I'm talking about areas where the local city governments don't have their heads firmly shoved where the sun don't shine and know that their towns will dwindle/die if they can't attract next-gen, preferably high-tech industry (and the workers that go with them) into the area. I'm not talking about towns where there's the ILEC deploying VDSL and the MSO pushing 50/10 DOCSIS 3. I'm talking about areas where the ILEC's nearest fiber is in the nearest city with population > 200,000 and you're in a town of 30,000, 10,000 or 3,000, and where (as such) the cable provider can upgrade (or not) at their leisure. In those towns you snag a few key business accounts as the new provider, then build out to lower-tier areas with the blessing of a city government that sees broadband as an economic development boon.

FWIW, costs are MUCH less than $10k per subscriber unless you're talking about very, VERY low-density areas, at which point you have no competition and an 80%+ take rate for whatever you can provide, as long as it marginally beats 3G service, which inevitably reaches 1000/500 and no more. Costs are closer to $2000 per subscriber, which are steep but something you can amortize over the long run. You just hang in there, compete on price when needed and compete on service quality and speed at all other times.

At any rate, I was talking about a provider who already has a network established and whose former bottleneck was cheap bandwidth availability. Building out a whole new network is expensive, but if you're competing against Frontier Communications might actually be a viable operation. Or if you're competing against CenturyLink and are willing to offer something better than 25/2 for $85 per month.