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« Cross subsidy?  
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TheyCallMeGod

@comcast.n

reply to TACSPEED
Re: Here's What Click Doesn't Have

Simply put, competition is very good for the end user, but as RED put it... overbuilds are very, very, very, very expensive and usually don't make any money for 3-5 years (and that is a FACT)... only the fat survive in that kinda market, Click! may survive though since they have a business backup... but will have to up their package load to equal that of everybody else in the area.... Most overbuilds bring in new and improved service over the existing companies; but have to sell it at extremly low rates to get customers to switch... all results in a very high negitive number on the books for a long time, until they get the customer base and trust... then come the rate hikes!!! IT WILL happen, just a matter of time... but hey if 4 overbuilds come to a city and force current rates down, but they die in the process, all the better for my monthly bill!!!


Octopussy2
Premium
join:2003-03-30
Batavia, IL

You have to remember muni builds just have to break even on their business model. They don't have to pay share holders etc...or for golden parachutes to CEOs who leave.

Overbuilds may be expensive for the private sector but munis can do it cheaper because of their business model, and even cheaper if they already own their own electric utility.
--
It's muni-licious! »www.tricitybroadband.com
Forums » Click!« Cross subsidy?  


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