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elray

join:2000-12-16
Santa Monica, CA
reply to big_e

Re: $5416 dollars per customer acquisition cost

Don't confuse acquisition cost per paying customer with build cost per address passed.

FTTH yields take rates of 30 percent - at $4K/address, thats around $13K per customer.

Charter bought on the cheap.

big_e

join:2011-03-05
Are you sure you don't have the numbers reversed? Most estimates I've seen put the cost to pass for FIOS at $700 per home with a cost of 4K per paying customer.

»www.nytimes.com/2008/08/19/techn···nted=all

In 2006 in NJ the cost to pass is $846 per household with an additional cost to connect of $900.

»www.state.nj.us/rpa/docs/white-paper.pdf

tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS
reply to elray
said by elray:

Don't confuse acquisition cost per paying customer with build cost per address passed.

FTTH yields take rates of 30 percent - at $4K/address, thats around $13K per customer.

Charter bought on the cheap.

And yet ANOTHER reason why Verizon jacked up rates.. now $94.95 for entry-level triple play and climbing (Price is right yodeler continues climb up mount Verizon) Sure, price is right for shareholders and profiteers... PFFT!!

»www.youtube.com/watch?v=DSAeyAV85UM

elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
reply to big_e
said by big_e:

Are you sure you don't have the numbers reversed? Most estimates I've seen put the cost to pass for FIOS at $700 per home with a cost of 4K per paying customer.

»www.nytimes.com/2008/08/19/techn···nted=all

My nose is wrinkling. If its $4K/sub, not per address, VZ would be foolish to quit; rents on the 30% take rate (premium buyers, immune to price), minus the union overhead, should be sufficiently attractive to continue expansion. While LTE will be a competitive threat, it won't affect the Fios set.