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tim_k
Buttons, Bows, Beamer, Shadow, Kasey
Premium,VIP
join:2002-02-02
Stewartstown, PA
kudos:13

reply to tiger72

Re: Figures

said by tiger72:

Because they want a return on their investment. If you had $50,000 to invest on upgrading a tower to HSPA+, would you spend that in Bolivar, Tennessee or Boston, Massachusetts? You'd spend it on Boston because you want to *surprise* turn a profit.

All of these rollouts happen in cities because that's where it's more likely to turn a profit sooner. This isn't a revelation - it's actually how every single business on the planet makes its decisions.
With so much competiton between techs and other ISPs, do they really make as much profit as they could by serving an area with no broadband coverage, but with with lower population dencity?
--
RIP my babies Buttons 1/15/94-2/9/07, Beamer 7/24/08, & Bows 12/17/94-10/11/09


tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
kudos:1
Reviews:
·T-Mobile US

said by tim_k:

said by tiger72:

Because they want a return on their investment. If you had $50,000 to invest on upgrading a tower to HSPA+, would you spend that in Bolivar, Tennessee or Boston, Massachusetts? You'd spend it on Boston because you want to *surprise* turn a profit.

All of these rollouts happen in cities because that's where it's more likely to turn a profit sooner. This isn't a revelation - it's actually how every single business on the planet makes its decisions.
With so much competiton between techs and other ISPs, do they really make as much profit as they could by serving an area with no broadband coverage, but with with lower population dencity?
According to the industry - yes. I believe that if T-Mobile or Sprint found out otherwise, they'd be more than happy to change the status quo if it benefited them at the expense of ATT and VZW. Apparently the status quo works better.
--
"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara

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