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tshirt
Premium Member
join:2004-07-11
Snohomish, WA

1 recommendation

tshirt to scaredpoet

Premium Member

to scaredpoet

Re: Fine is not just $100,000/day

said by scaredpoet:

The penetration rate is low because Verizon won't expand.

You misunderstand "penetration rate", it's not a total number that would be fixed by further rollouts, but the percentage of homes passed that become long term (not just promo seeking)full rate customers, because that is what would repay the cost of the FioS over the next 40 years.
If the take rate (another way to express penetration) is below 40% in the areas the carefully selected to build first, other areas are likely to be worse, so expanding makes the total number worse.

people shouldn't get too happy about huge fines which will eventually be repaid by customers.
InvalidError
join:2008-02-03

InvalidError

Member

said by tshirt:

people shouldn't get too happy about huge fines which will eventually be repaid by customers.

Exactly. The customers always pay one way or the other.

Lawyers like big numbers because they win regardless of which way things turn out in court. If Verizon gets fined 100k$/sub/day, chances are many Verizon will find their POTS/DSL/wireless bills increase by a few bucks per month to offset the fine, interests and capital gains that would have been expected from the same amount invested elsewhere. If Verizon pays a 2G$ fine, customers will inevitably end up paying well over 2G$ back in NPV for it over time.