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Surewest Puts FTTH Expansion On Hold
It's cheaper to buy new networks than expand existing ones...
by Karl Bode Wednesday 17-Dec-2008 tags: dsl · Fiber · SureWest Internet
Last December, Sacramento-based SureWest Communications announced plans to acquire Kansas City-based Everest Broadband for $173 million. Actual integration was largely finished last February, but Everest Broadband customers didn't officially take on the Surewest brand name until July. Now that the integration is completed, Kansas City locals are being offered 100Mbps ($191.99) and 20Mbps ($91.99) symmetrical fiber connectivity.

But according to the Kansas City Business Journal, Surewest (see DSLreports.com reviews) is going to scale back their fiber to the home expansion in Kansas City. Why? The company wants to save money in order to buy additional carriers. SureWest CEO Steve Oldham tells the paper it's getting cheaper to buy existing carriers than to deploy new networks. If acquisition targets don't spring up, Oldham says they'll revert to building out existing networks.

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tmc8080

join:2004-04-24
Brooklyn, NY

pwices suck

$191 for 100, $91 for 20?!?
Either raise the 20 up to 50 symm... or lower the damn price... that's very high, even for symmetrical in a non-northeast corridor.
rayeger

join:2003-07-05
North Royalton, OH

Re: pwices suck

For home users those prices suck, but how many businesses would kill to have those prices!!!

Apophis
Jaffa Kree
Premium
join:2001-12-27
Holmen, WI

Re: pwices suck

I'd pay 3k for 100/100 fiber for my business. where do I sign up?

battleop

join:2005-09-28
00000
I take it your just an end user and don't know that much about these interwebs.
rayeger

join:2003-07-05
North Royalton, OH

Re: pwices suck

Apparently not, so enligten me.

battleop

join:2005-09-28
00000

Re: pwices suck

Sorry, that was meant for tmc8080 and not you. From your post you seem to realize that 100/100 for under $200 bucks is not a realistic price for the rest of the world. I've been quoted anywhere from $2200 to 5000 for 100/100 connections over the years.
rayeger

join:2003-07-05
North Royalton, OH

Re: pwices suck

Ahhh, ok, yes if this was available for where I work, we jump on this!!!! Much better that having to pay for T1's
benr0

join:2002-10-19
Olathe, KS
For my needs, prices are great at $99.
5/5 Service
Unlimited Local and LD
Basic Service
Digital Service
HD Service
HD DVR
4 set top boxs.

battleop

join:2005-09-28
00000

Oh the nerve of them!

"Why? The company wants to save money in order to buy additional carriers"

/sarcasm on

Oh my goodness. They can't do that! It is their civic duty to make sure that every single breathing creature has a 100/100 connection into their brain before they can ever, ever, ever think about using their money for anything else.

/sarcasm off

funchords
Hello
Premium,MVM
join:2001-03-11
Yarmouth Port, MA
kudos:5

Translation -- "we want a growth subsidy and debt forgiven"

Battleop's sarcasm aside, this story could have everything to do with the idea that broadband should reach more people.

Everyone is talking about a government-led jobs and infrastructure project that includes expanding broadband penetration and adoption (along with other things). Who will own those broadband systems? Why should Surewest invest dollars wiring the last mile if it can't predict how it will turn out?

So they'll shop for systems in trouble -- which excites nobody but maybe they can get lucky and press a failing systems' creditors to cancel or restructure debt (plus government bailouts?), and move on with "no-deal" if they won't bargain.

I could be completely wrong -- economics like this is certainly not my main forte.
--
Robb Topolski -= funchords.com =- Hillsboro, Oregon -- KJ7RL
What you do at Christmas does not matter so much; What counts are the Christmas things you do all year through.

mob
Moderhated
Premium
join:2000-10-07
Reviews:
·SureWest Internet
·Vonage
·RoadRunner Cable
·surpasshosting

This is really about redlining

They have overbuilt the areas where they can make an easy profit, and now they have the fiber in the ground for an easy fast build out when they are going to see a massive easy pay off. They don't want to provide service to the full cities they are in, just the better off areas. They won't serve my house even though they ran fiber to other areas and went through my neighborhood to get there.

Surewest is merely continuing the redlining policy that Everest put in place.
--
If we do not succeed, then we run the risk of failure - J. Danforth Quayle
Ich habe kein Mitleid - Me
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

1 edit

Re: This is really about redlining

In case you haven't noticed, fiber deployments are expensive and the financial world is in turmoil.. we're in a recession on the brink of a depression worse than your grandparents ever saw...

.. and you're worried about redlining.

I can't wait for the day that the economy is so bad that you guys come back here complaining of financial ruin and broadband gets put into perspective.

There are many reasons why areas get installed first and it's not always this "redlining" you claim. If people had their way, around here, you all would have these companies employing thousands of people so that the ENTIRE metro areas would be lit on in the same nano-second as not to call foul.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

30GB traffic cap

Do people in kansas city also get this?
SKiPDoG

join:2004-03-27
Rio Linda, CA

Re: 30GB traffic cap

Surewest does not monitor or enforce their "caps". This comes strait from a NOC employee
benr0

join:2002-10-19
Olathe, KS

Re: 30GB traffic cap

Don't know of any caps in KC.
Not on the website - everestkc
cyberbeing

join:2005-02-18
Sacramento, CA
I don't know why you like trolling the Surewest news topics with misinformation. Surewest doesn't have a 30GB cap on any tier. End of story.

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