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This is a sub-selection from The next Bell System


aaronwt
Premium
join:2004-11-07
Woodbridge, VA
reply to elray

Re: The next Bell System

said by elray:

said by IowaCowboy:

Maybe if we give Google the perks and incentives that AT&T/Bell System was given, maybe they'll expand it to a national monopoly on broadband (fiber).

Maybe Google can buy out Verizon FiOS since Verizon seems very interested in exiting the wireline business and they don't seem to want to expand FiOS despite the fact it sells like hot cakes in areas that FiOS has been deployed.

If FiOS was "selling like hotcakes", Verizon would continue to expand its footprint.
The simple fact is that the majority of consumers in Fios territories do not want to pay for it - this has been proven for six years.

Who would pay $70+ a month for fiber optic when you can get cable modem or DSL service for $30? Answer: not that many.

Even if FiOS was selling like Hotcakes they still would not continue to expand. Because they are not happy with only a 10% to 15% profit margin. They want to get the 25% to 35% profit margins like they do with Verizon Wireless.

silbaco
Premium
join:2009-08-03
USA

The profit margin on FiOS could be very good, but as long as people continue to use DSL/copper it will remain low. Verizon needs to move everyone over to FiOS and off of copper because it is pricey to maintain a copper network. But they can't, so it continues to sit. If they could future FiOS expansion would not be out of the question.



Oh_No
Trogglus normalus

join:2011-05-21
Chicago, IL

I dont get this comment.
Verizon owns the dsl/copper lines and the fiber lines.
If they upgrade an area for fios they can force people to switch by turning off the copper.



Yello

@144.70.2.x

Verizon's legacy wireline business is regulated and publicly funded via USF. They cannot just force people onto FiOS abandon the copper.


tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS
reply to silbaco

said by silbaco:

The profit margin on FiOS could be very good, but as long as people continue to use DSL/copper it will remain low. Verizon needs to move everyone over to FiOS and off of copper because it is pricey to maintain a copper network. But they can't, so it continues to sit. If they could future FiOS expansion would not be out of the question.

Verizon hasn't paid more than lip service to actually offering 1gigabit and beyond to it's FIOS customers. Profit margins are dependant upon the consumer's income which at last check is getting squeezed tighter than a ponzi scheme bank acount after the money is laundered (stolen).

In 1996 dollars, you should have been able to afford $99 triple play services inclusive of all taxes & fees as a mid-grade tier. in 2012's dollars that's pushing $149.. What was the google's dual play price $140? This includes gigabit symmetric.

While the price should have gone up.. the verizon mid tier should reflect easily 100 - 300 megabits symmetric by now.

One last thing, there was at least a 2 year period of price deflation from 2008 - 2010 where all consumer prices were on a freeze or decline (if you saw prices increase you were getting gouged).

Glad to see Google fiber is now live instead of vaporware.. many people were speculating the first actual customer served would be well into next year.. (q1-2013)

elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
reply to Yello

said by Yello :

Verizon's legacy wireline business is regulated and publicly funded via USF. They cannot just force people onto FiOS abandon the copper.

Actually, they can, unless the FCC reverses itself.

But revisiting forbearance would not solve anything.
The problem is the underlying cost of FTTH - a price most consumers are unwilling to pay. Re-regulating telco would result in higher, not lower prices overall.

TBBroadband

join:2012-10-26
Fremont, OH
Reviews:
·AT&T U-Verse
·MegaPath
reply to Yello

They could force you over to FiOS. AT&T did this in areas where they built out FTTH under Project Lightspeed. and only the dial-tone is regulated, not the Internet. They could also pull an AT&T and go to each state and ask them to de-regulate their business and remove MTS if the customer bundles- which states are doing for AT&T.



skuv

@rr.com
reply to Oh_No

said by Oh_No:

I dont get this comment.
Verizon owns the dsl/copper lines and the fiber lines.
If they upgrade an area for fios they can force people to switch by turning off the copper.

Not unless they are going to charge the same price for FIOS internet and phone as they are for DSL/POTS to the people they forced over.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to tmc8080

said by tmc8080:

verizon mid tier should reflect easily 100 - 300 megabits symmetric by now.

Why? Based on what?
said by tmc8080:

One last thing, there was at least a 2 year period of price deflation from 2008 - 2010 where all consumer prices were on a freeze or decline (if you saw prices increase you were getting gouged).

The real rate of inflation is what matters, not the CPI fluff numbers that get thrown around. I doubt there was any more "gouging" going on than normal during the last few years.

Kamus

join:2011-01-27
El Paso, TX

said by openbox9:

Why? Based on what?

Based on the fact that we're talking about an information technology.

Here's an example of an information technology you might be familiar with:

»en.wikipedia.org/wiki/Moore's_law

openbox9
Premium
join:2004-01-26
Germany
kudos:2

That doesn't answer my question.


Kamus

join:2011-01-27
El Paso, TX

said by openbox9:

That doesn't answer my question.

It does answer it.

openbox9
Premium
join:2004-01-26
Germany
kudos:2

No.