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RARPSL
join:1999-12-08
Suffern, NY
| said by n1zuk  :If profits were to be made with an antiquated network in a rural area, do you think Verizon (and all the other companies before them) would have sold it? While I tend to agree with you I will play Devil's Advocate and suggest that there might be a profit to be made there but Verizon pulled out due to being able to make a better profit by investing its resources in a different service area.
It is a case of trade-offs. You can make a Profit of $X by investing it in Area1 or a Profit of $5X by investing it in Area2 so you go with putting the money in Area2. It might not just be an inability to make a profit in Area1 but only a case of making a lower profit from Area1 meaning that another company would find the profits from Area1 enough compared to what they could get from other investments to justify investing in Area1.
Note: I am not saying that this scenario is accurate but just suggesting it as an alternate explanation why one company would be unwilling to invest while another might while both would be able to make the same profit. | |
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grcore
Power To The People
join:2003-12-06
usa
| said by n1zuk :Anyplace that there is a profitably dense population area, the competition is already tough Not true, many of these dense areas are monopolies.
Anywhere there is no monopoly, the competition is tough... | |
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tacos4me
join:2008-01-14
Houlton, ME
 ·Great Works Internet
| I love it. I can't speak for other areas, but most everyone in my town sees FairPoint as the bad guy in this whole deal, and are dumping as many FairPoint services as they can. I've personally talked at least 6 or 7 former Verizon DSL subscribers into switching from FairPoint to a local ISP, as well as making the switch myself. | |
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| Marckus0513
Just Because
join:2003-01-11
Vernon, VT
·Verizon Online DSL
| Re: I love it. said by tacos4me :I can't speak for other areas, but most everyone in my town sees FairPoint as the bad guy in this whole deal, and are dumping as many FairPoint services as they can. I've personally talked at least 6 or 7 former Verizon DSL subscribers into switching from FairPoint to a local ISP, as well as making the switch myself. Why anyone would see Fairpoint as the bad guys is crazy to me. It is Verizon who spent little to nothing on the network in Maine, NH and VT for that past several years then bailed on everyone involved!! And you can talk everyone you want into leaving FP and going to one of the local ISP but unless they are wireless they still use FPs facilities and it is those facilities that the local ISP needs to be in good shape to give good service to their subscribers. So why doesn't everyone quite slamming FP who has a much better chance of improving facilities than Verizon ever would have done up here and give them a chance to do so! They just took over a network that has been neglected for years give them a chance!!
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ILpt4U
join:2006-11-12
Crystal Lake, IL
·AT&T Yahoo
| Verizon Spun off the NE Business... So is AT&T going to buy it up from FairPoint once it goes down the drain? AT&T already has a New England presence with SNET in CT, so its not like they are a stranger to the area...
Or perhaps Verizon will simply buy it right back, but for pennies on the dollar...
Or perhaps FairPoint really does have a plan, and will turn a profit in the next quarter or two... | |
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SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Burlington, MA
 ·Verizon FIOS
| Re: Verizon Spun off the NE Business... I thought VZ would pick it back up for "pennies on the dollar" too - but I do not think so anymore. The fact is, northern New England is *not* profitable. VZ does not want it - and they're glad to be rid of it. VZ has sold other unprofitable areas and continues to offer additional areas as well.
The residents of the northern New England states should have held VZ's "feet to the fire" by calling on those states' PUC's to block the sale. Good luck getting a company like FP, with their financial troubles, to deploy what they've promised *even* if it comes with a premium monthly price.
I doubt ATT would even be interested for the very same reasons VZ sold. | |
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Shadow01
join:2003-10-24
Wasteland | State run telco I think the next owners will be the States... Some will get their wish and have a government run local loop.
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R.I.P. Moby 1964 - 2007 | |
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FairPoint Lost $10 Million in 1st Quarter
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Name change in order
FairPoint should change it's name to UnFairPoint. As in unfair to subscribers. How long will it take for the government bail out to begin. Will Verizon be allowed to skip on down the road with a bag of money in it's corporate pocket and a sneer on it's corporate face at how they outsmarted the government. It will probably be very taxing on the American taxpayer.