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tanzam75

join:2012-07-19

1 edit
reply to big_e

Re: $5416 dollars per customer acquisition cost

said by big_e:

That's interesting. Here we have a telecom paying $5,416 dollars per customer for a merger, yet the typical attitude in this industry is that spending the same amount of money or less per customer for building out FTTH, or extending service to rural customers is deemed too expensive and not a good enough ROI.

It costs less than $5,416 per customer to build out FTTH.

The problem is that once you've finished building it, you start with no subscribers. It might take several years to get to your anticipated take rate. Meanwhile, you're paying interest on the bonds, lighting up the equipment, etc.

In contrast, Charter bought a fully-functioning cable system, with subscribers already in place. The day the merger closes, Charter starts collecting revenues from all of those subscribers. That's why they're willing to pay more per cable customer than for a new FTTH build.