said by sonicmerlin:
Meaning if an ISP builds out fiber to 10 homes, but only 2 of them take up the service, then their uptake rate is 1/5 or 20%. So the cost of building out fiber to ten homes is spread out to only 2 paying households. So if it cost $1000 per home, it would be $10000 for all 10 homes, divided by 2 and you get $5000 per home.
All signs point to FIOS not being profitable unless the customer is buying services for a period of 2.5-3 years. I hear you on the uptake rate, and it sounds plausible. At the same time though, it sounds pretty low. Even lower than FIOS estimates or the experts estimate.
So while I do agree that the uptake rate should go down depending on the amount of houses in an area that purchase the service, I don't think it goes down that much.--
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