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Sandy, UT
reply to sonicmerlin

Re: If one ISP balks though...

said by sonicmerlin:

I think you`re being naive about the difficulty of overbuilding and cutting through all the red tape.

You`re also ignorant of the costs. One million = $10 billion? That`s 10,000 per person... in a metro area. So wiring up the entire US of 300 million would cost $3 trillion? Are you nuts?
I said larger than a million. That's what the + means by the way, it means more than. I work in the civil projects industry, the red tape isn't difficult, it's always been cost of construction. Anyone stupid enough to argue it's the cost of the red tape doesn't know anything about the business and is talking out their ass.


RCN then acquired Residential Communications Network to form the foundation for McCourt's new vehicle to take on the entrenched telecommunications industry. When the realignment was complete in October 1997, RCN lost little time in raising $575 million in junk bonds to start building its communications network. The initial focus was on a corridor that stretched from Boston to Washington, D.C., a potential market of some 25 million households. McCourt's ambitious goal was to make customers out of nine million of them. Given that it would cost from $1,200 to $1,400 to wire each household, RCN was looking at a $12 billion price tag to build the Northeast network.

25 million households, $1,200 per home = $30,000,000,000 =$30 billion. This figure is the wire line installation costs. The one thing it doesn't cover is the plant and CO's.