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Austin, TX
·Time Warner Cable
reply to rahvin112

Re: What are they smoking?

"Fiber is dirt cheap" - How cheap are you thinking? If people want to be able to support Netflix my estimate is that bandwidth will need to be in the $15 per megabit range if you're buying a capped pipe, $20-$25 on 95th percentile.

Also, the VAST majority of the fiber you're talking about is run between major interconnection points (Dallas, LA, NYC, Chicago, Atlanta, Ashburn) with another significant percentage running to big towns that aren't IXPs (San Antonio, Austin, Salt Lake City, Washington DC). Once you get beyond those big cities you end up with at most three fiber providers (ILEC, CLEC like Level3 or someone else, cableco) and in some cases one or more of those won't sell you fiber (try getting fiber from Verizon at a decent price where they're selling DSL only now, and plan to for the foreseeable future...a T3 would be $6000+).

As I mentioned before, connectivity on the consumer side isn't sustainable if they're running Netflix and the provider is paying $100+ per megabit on bandwidth. The economics just don't work out.