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TKJunkMail
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join:2002-03-03
Avalon, NJ
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2 edits | reply to N3OGH
Re: 25mbits is not enough for internet, tv, phone
said by N3OGH  : When AT&T is still paying the high cost of maintaining a rickety old copper plant, with no chance of matching the abilities of fiber, Verizon will be selling TV, Internet, and Phone over the most advanced network in the country.
Either way the day is coming when AT&T is going to HAVE to invest in FTTH. They're just trying to prolong the inevitable.
This is a classic case of good money chasing bad. Investing in all that "lightspeed" gear is gonna make things even more expensive, since it'll all be totally obsolete in 5 years... It is not as black and white as many here believe concerning fiber investment. AT&T is investing a lot of money to extend fiber in their plant: from CO to POPs; from POPs to curb(FTTC) in many places, etc. And even FTTH in greenfield developments. So the world is gray and not black and white. A lot of the cost to maintain copper is being eliminated already. And they will be getting more money from customers for TV to help finance future roll-outs of fiber, including more FTTH.
So whose method is best? Verizon's way of paying most of the FTTH costs in one big splurge? Or AT&T's way of "pay as you go"? The answer depends a lot on the relative costs of capital vs return on capital for the 2 firms and on their access to investment money. And if you are a CEO and CFO of these companies, what the Board of Directors see in financial results quarter by quarter. If the CEO/CFO's guess wrong their jobs are on the line.
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| said by TKJunkMail :So whose method is best? Verizon's way of paying most of the FTTH costs in one big splurge? Or AT&T's way of "pay as you go"? Build it right the first time and get it paid for... Or keep pay for continual incremental upgrades as you play catch up...
In the long run, one costs less..
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sporkme
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| said by bmn :said by TKJunkMail :So whose method is best? Verizon's way of paying most of the FTTH costs in one big splurge? Or AT&T's way of "pay as you go"? Build it right the first time and get it paid for... Or keep pay for continual incremental upgrades as you play catch up... In the long run, one costs less.. Exactly. While the cost of "normal" DSLAMs and the like have been falling, all this cutting edge VDSL stuff is not cheap. Nor are the settop boxes, dsl modems, etc. And if ATT goes through a few iterations of DSL technology to keep pace with things, that's even more money. And the continuing maintenance of all that copper, even if it is being "pushed out" closer to the customer, is still going to be much more than maintaining a fiber plant. Especially if they need to bond multiple pairs to get the bandwidth they need for a home with 3 or 4 televisions and 2 or more DVRs.
I absolutely despise Verizon, but I think they clearly made the right move with FiOS. | |
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