|reply to isp10002 |
Re: [DSL] Milking Frontier for all their network is worth
Frontier is in a great position in areas where cable isn't available, because it doesn't cost much to deliver 12-25mbps to customers. Say it costs $10,000 to run 10gbit fiber (4x OC-48 connections or a single OC-196) to a CO and that CO can deliver at least 12mbit if not 25mbit or even 40mbit to at least 150 customers. Assuming Frontier isn't leasing the bandwidth from another company, they are using around 40% of their available bandwidth if all 150 customers are using a full 25mbps at the same time, which is statistically improbable. It also means those customers cost Frontier less than $100 each to connect, plus the cost of DSLAMS, which is about $700 for every 8 customers. So you're looking at under $200 per customer plus a modem. Not too bad. And that still gives expansion possibilities of at least 100%, assuming everyone is on a 25mbps plan, which isn't likely with DSL.
For not much per customer, Frontier can deliver incredible speeds. Fiber to the home is nice for over 50mbps, but for anything less than 30, it's not really necessary. I'm excited to see VDSL2 deployed to more rural areas.
Keep in mind the cost for fiber is 100% pulled from the air and could be VERY off, but as long as the fiber is being pulled from within 2 miles, it's plausible. If anything over 5 miles, the prices starts around $250,000 to run fiber. If the lines are leased, it's around $250,000 to run it 5 miles and then around 15k per month per gigabit. At that point, 25mbit service is less enticing for Frontier.
I hope someone geeky enjoys this post!