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MVM
join:2005-09-26
Cape Coral, FL

More Fiber to wizziwig

MVM

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Re: 4K & mpeg 4 availability

said by wizziwig:

- a win/win for everybody.

Except for the bean counters that have to keep the shareholders happy. Who is going to pay for all the boxes that have to be replaced? As has been pointed out several times, this will happen slowly.
Hooper
Premium Member
join:2001-10-22
Castle Rock, CO

Hooper

Premium Member

said by More Fiber:

Except for the bean counters that have to keep the shareholders happy. Who is going to pay for all the boxes that have to be replaced? As has been pointed out several times, this will happen slowly.

We pay for the these boxes on a monthly basis PLUS Verizon depreciates the hardware (typical depreciation is 2 years). These boxes are at worst a zero sum and at best a profit center. Who knows, Verizon may even lease the hardware which is a whole other discussion.

Bottom line, Verizon is surely using every possible tax advantage and cost structure to break even or turn a profit on these boxes. No need to worry about them losing major dollars over replacing thousands of boxes that in many cases are close to 5 years old.

birdfeedr
MVM
join:2001-08-11
Warwick, RI

1 edit

birdfeedr

MVM

said by Hooper:

No need to worry about them losing major dollars over replacing thousands of boxes that in many cases are close to 5 years old.

I think the numbers of SD boxes out there is much higher than several thousands, higher even than many thousands. Also, you have to include the DCT-700s which were given away free "for as long as you remain a FiOS customer." I rely on that free box.

There will be a lot of problems for the bean counters to pull SD service and replace it with a HD box. Free? Yeah, I'll take it, but I'll scream if VZ charges me for it. Me and many thousands of others. Of those, thousands of whom will say "why remove SD? it works just fine on my tube TV". Luddite and proud of it.

It would be interesting to see the real numbers. With 4+ million TV subscribers now and projected to be closer to 5 million by end of 2013, I think you're underestimating the SD boxes in use by several orders of magnitude.

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MVM
join:2005-09-26
Cape Coral, FL

More Fiber to Hooper

MVM

to Hooper
said by Hooper:

No need to worry about them losing major dollars over replacing thousands of boxes that in many cases are close to 5 years old.

Sure the 6xxx boxes have probably been fully depreciated and VZ has gotten back their initial investment in rental fees.

However, you're not understanding how CAPEX (Capital Expenditures) work. To fund new boxes, those dollars have to come out of the current capital expenditure budget. Those are dollars that VZ can't spend elsewhere. CAPEX dollars are limited and VZ must prioritize where limited CAPEX dollars are spent.

I'm not defending VZ here, just explaining how it works.
As both a FIOS subscriber and a VZ shareholder, I trust that VZ management is making the correct trade-offs.