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Nightfall
My Goal Is To Deny Yours
Premium,MVM
join:2001-08-03
Grand Rapids, MI
Reviews:
·ooma
·Comcast
·Callcentric
·Site5.com
reply to sonicmerlin

Re: Just a drop in the bucket

said by sonicmerlin:

The cost of $4000 is per "connected home", meaning you have to consider uptake rate. The higher the uptake rate, the lower the cost. But cost per any home, connected or not, should be in the very low 1000's.

I guess I don't understand the uptake rate that you are talking about. I will do some searching on it. Do you have a link that may explain it for me?

Also, does the uptake rate also take into account other connectivity such as copper or cable?
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My domain - Nightfall.net

sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

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.



Nightfall
My Goal Is To Deny Yours
Premium,MVM
join:2001-08-03
Grand Rapids, MI
Reviews:
·ooma
·Comcast
·Callcentric
·Site5.com

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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My domain - Nightfall.net