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bobjohnson
Premium
join:2007-02-03
Orlando, FL
Reviews:
·AT&T U-Verse
·T-Mobile US
reply to IowaCowboy

Re: Network modernization

said by IowaCowboy:

They should be allowed to shut down legacy networks IF they pass those users with equal or better service (hint: Fiber). If they don't upgrade, then they should have to maintain the legacy networks.

Inner city areas are just as profitable as suburban in the telecom sector, yes churn may be higher but now you are raking in activation and installation fees when that apartment turns over every three months. And their security deposit (as they can't pass credit) guarantees that the bill will be paid in full (including cancellation fees).

If I was running an ILEC and had the choice between running a fiber line from the CO to a 100 unit apartment complex or 100 houses on 1 acre lots (even in a straight line) it would make business sense to run to the apartment complex.
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LTE4LIFE

join:2013-02-28
Yeah but those 100 houses on 1+ acre lots are probably owned by people that have more disposable income to spend on higher speeds.. In the long run, the 100 houses would be a better choice..


bobjohnson
Premium
join:2007-02-03
Orlando, FL
But how long does it take to recoup $50k a mile when you only go a mile vs 30 miles?

cramer
Premium
join:2007-04-10
Raleigh, NC
kudos:9
reply to LTE4LIFE
a) that's not always true -- I know plenty of six-figure salary types living in apartments. (and I'm not talking NYC loft's here.) I was one of them for a long time
b) just because people have "disposable" income, doesn't mean they dispose of it -- esp. on high speed internet they know they won't use.
c) the simple fact is no one thinks in terms of the "long run". Investors want to see something of their investment(s) on a scale of months, not years. Something that *might* be profitable (or even break-even) in 5 years, isn't going to attract much funding.

Wiring up a building vs. 100... dude, if you cannot see which is going to be more profitable (and quicker to profit), then you clearly don't have any money.