Verizon vs SBC - dslreports.com

Author	All Replies
DrTCP Yours truly Premium,ExMod 1999-04 join:1999-11-09 Round Rock, TX	Verizon vs SBC If it is costing $1200 per customer for Verizon, it is unlikely to have long term traction beyond trials. The cost should come down or Verizon should offer much more revenue generating services over the fiber to recuperate costs and make money. However much I like fiber, I think SBC's approach of fiber to the hub and VDSL (or ADSL2+, 3 etc.) for the remainder short distance may be more feasible from business point of view.
	to forum · permalink · · 2005-01-06 17:57:14 ·
Zoder join:2002-04-16 Miami, FL	It's not really that much when you think about it. With triple play customers they can recover that cost in less than 3 years. The original phone network took decades to recover the costs.
Zoder join:2002-04-16 Miami, FL	to forum · permalink · · 2005-01-06 18:11:38 ·
bogey780 join:2004-03-19 Here	Not really. They'll have to upgrade their backbone and pay licensing fees and hire whole new crews. 100$ a month ain't gonna cut it.
bogey780 join:2004-03-19 Here	to forum · permalink · · 2005-01-06 18:37:11 ·
DrTCP Yours truly Premium,ExMod 1999-04 join:1999-11-09 Round Rock, TX	reply to Zoder said by Zoder : It's not really that much when you think about it. With triple play customers they can recover that cost in less than 3 years. The original phone network took decades to recover the costs. I am not sure if the customers are going to commit for such long periods! I am personally not warm to any contract that lasts more than 1 year. With Cable and Satellite and other alternatives countering the offer (and not everyone would like triple and quadruple play with one service provider for various reasons) the investment is unlikely to recover the infrastructure costs of making the service available. The cost of deployment should come down to $500-600 level for meaningful recovery and turning profits to shareholders.
	to forum · permalink · · 2005-01-06 20:20:16 ·
BosstonesOwn join:2002-12-15 Everett, MA clubs: ·Comcast	They are not relying on contracts to solve the problem. Verizon knows that this is thier next step of they lose to comcast. If comcast can provide a phone service that has even a small problem they can scoop up the people who are hating the service. Now the life span of fiber is incredibly large. So they are banking on the future of the product. Now picture in 3 years when they use the money to roll out over a large area of thier map. They are still taking in money on copper that is already paid for. They also have other areas of income such as ld and it is going to help pay for this fiber. Once the fiber is laid and they get video over that pipe it's all paid for in months. Since it takes 2 years of just net service to pay off the fiber per customer anything after that is profit and can be reused. It will take roughly 4 to 5 years to pay off and become pure profit on the fiber in a city alone. and that is using high balled numbers. -- "It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
	to forum · permalink · · 2005-01-06 20:43:53 ·


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