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djrobsd
join:2002-01-24
San Diego, CA Reviews:
 ·Cox HSI
| How are they gonna pay for this? 250 million for one company to run fiber to their subscribers, when the company itself is only worth 500 mil! How are they gonna pay for all this? Has anyone priced out the WHOLESALE cost cable companies pay for each channel? Ie, how much does it cost in licensing fees for them to deliver your expanded basic channels like MTV, Lifetime, CNN, etc... You figure the average cable user probably pays $40 a month for their video services. I could be way off there, just a guess, 40 bucks divided by 250 million is 6,250,000. Assuming this company in question can sign 100,000 people up for this new service, it would take them 62 months to repay the costs, without interest, and that's ASSUMING that they are making 100% profit on the 40 bucks, if you say they only make 20 bucks profit after paying the cost of programming, then it would take then 124 months to repay it... And of course, all this is assuming they can sign 100,000 telco customers up for the service, they may only have 50,000 customers in their local market.
I bet when you price everything out, and then you factor in the amount you can charge your customers, that 250 million bucks would probably take them 30 years to repay, if ever. | |
 calvoiper
join:2003-03-31
Belvedere Tiburon, CA | Let's put some rough numbers on this. Winnipeg has about 650,000 people, so this would mean an investment of $375-400 per person. With an average household size of 3 (per demographic info on a Winnipeg info website) this means an average investment of about $1200 per household. If the company has a 10% cost of funds, paying the debt service is $120/yr./hsehld if they signup everybody, or $10/month.
Figuring from there is easy. If they sign up half, it's $20/mo. If they get a third, $30/mo., etc.
If they get 25% of Winnipeg to signup for phone and broadband over this system, $40 of that monthly package would go to debt service--and the gravy from offering wildly improved cable (digital, PPV, etc.) isn't counted here. Better penetration only increases the pleasure.
It's doable. Frankly, I hope they make it.
Calvoiper
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VoIP--the death knell of remaining voice monopolies! | |
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