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tmc8080
join:2004-04-24
Floral Park, NY
| higher densities..
verizon KNOWS that the cost of NOT moving IS worse than anyhthing! But seriously, while it is NOT cost effective to deploy a 400-home community it IS more profitable to wire a 4000 home community. As said, 9000 to wire each home becomes $900 when you multiply by a factor of 10. Now ROI is much lower... 2 years with customers bundling 2 services, not 3,... bundling 3 basic services cuts ROI by 6 months.. Subscribing to higher grade services such as 20/5, 50/5, and premium cable channels are ICING taken from cableco's cake.
verizon built a huge warchest from the good old ma'bell days and has a large foot print, that is while not GEORGRAPHICALLY bigger than the other telcos, has probably the MOST POTENTIALLY PROFITABLE markets in the country as far as telco/cable services goes. VOIP was the catalyst for initial spending by telcos.. and did what years of regulation, failed dsl deployments, carrots and sticks did not... erode profits. companies know ONE THING.. the bottom line.. just like the top 3 auto makers know, gasoline won't be cheap or locatable in large quantities out of terrorists backyard forever and they need to make changes sooner rather than later to solve out fuel consumption dilema.
btw, i know i'll catch flack for this, but isn't a 400 home community rather RURAL? Especially in 2006, of course unless your talking about greater New Orleans, but they have an excuse... | |
haamster
Premium
join:2002-12-02
Monroe Township, NJ
| You're missing the point. The author used 400 homes with 40 installed. It doesn't matter what number you use. It's the ratio of homes installed to homes passed that is the issue. Go ahead. Use a 9000 home community as an example. If you use 10% installed, 900 homes, the amount per home comes out the same. The author is just taking any representative slice of the whole figure of 3 million homes passed and 300,000 homes installed.
Verizon is paying to wire neighborhoods and to wire individual houses. The author just combined those costs into one figure per house installed, which is a fairly reasonable way to figure out how much revenue they need to generate from each sub to break even. It turns out it's a lot. | |
CableTool
Poorly Representing MYSELF.
Premium
join:2004-11-12
| said by haamster  :Verizon is paying to wire neighborhoods and to wire individual houses. The author just combined those costs into one figure per house installed, which is a fairly reasonable way to figure out how much revenue they need to generate from each sub to break even. It turns out it's a lot. I love how people think that fiber just APPEARS and everything you do with it is pure take away profit.
Even with copper, a node that has a capacity of 500 homes needs at least 100-125 operating off of it to make the cost to deploy, run and mantain that node and its run profitable.
Then look at verizon, Three Million homes passed, 350,000 subscribers.. there is no money being made.
I know everyone wants fiber and I am smart enough to know cable will be barking up that tree as well, replacing its last mile with fiber at some point, but these numbers make sense. Its funny how crazy people get when Verizons White Night gets put into perspective. And when people DONT switch to verizon when it is available they are idiots and shortsighted and all other kinds of things..
Hilarious. This mob cracks me up! 
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