wifi4milez
In Need Of Garbage Pail Kids 1st Series
join:2004-08-07
New York, NY
 ·Sprint Mobile Broa..
 ·RoadRunner Cable
 ·BroadVoice
| How will they make money doing this?
How do they plan on making money after building a 10 gig fiber ring given that they only have 17,000 subs? They even mention that only half of their subs will be reached by the new network. I would be interested in seeing the numbers associated with this project!
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я люблю Денди! |
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PDXPLT
join:2003-12-04
Banks, OR
edit:
September 17th, @12:18PM
| said by wifi4milez  :They even mention that only half of their subs will be reached by the new network. No, they said only half will get IPTV. This sounds like a FTTN project; only those close enough to a node for high-enough speeds on ADSL2+ will get TV, I guess.
Since they're not a publicly-traded corporation, all they need to do is not lose money. They don't need to maximize ROI in order to make Wall St. happy.
USF funds aren't available to fund broadband, except to schools. It's only for basic telephony. |
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wifi4milez
In Need Of Garbage Pail Kids 1st Series
join:2004-08-07
New York, NY
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice
| said by PDXPLT :said by wifi4milez :They even mention that only half of their subs will be reached by the new network. No, they said only half will get IPTV. This sounds like a FTTN project; only those close enough to a node for high-enough speeds on ADSL2+ will get TV, I guess. Since they're not a publicly-traded corporation, all they need to do is not lose money. They don't need to maximize ROI in order to make Wall St. happy. USF funds aren't available to fund broadband, except to schools. It's only for basic telephony. Forget about maximizing ROI, I am more curious about how they plan on not losing money by doing this. While they are not a public company, they still need to make money in order to survive. 10 gig rings are not cheap (even from a wholesale perspective) here in NYC, I cant even imagine the cost to deploy one in a very rural area! I am not saying this cant be done, I would just really like to see the business plan and look at the numbers to understand how they are going to make it work.
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я люблю Денди! |
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MrMoody
Liberal Capitalist
join:2002-09-03
Smithfield, NC | I'm guessing they're getting some sort of help from ConnectKentucky. |
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mogooder
join:2002-11-26
Washougal, WA | reply to wifi4milez
Its a Co-op, Its not about making money.
mogooder
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"The Secret is in the RITHMATIC" Henry Hudson |
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tschmidt
Premium,MVM
join:2000-11-12
Milford, NH
 ·Verizon Online DSL
| reply to wifi4milez
said by wifi4milez :How do they plan on making money after building a 10 gig fiber ring given that they only have 17,000 subs? From the article it sounds like they are building their own ring. My guess is while the fiber is designed to support 10G most likely initial build-out will not fully utilize it. The important aspect it building the ring itself.
From the article sounds like they are going with Remote Terminals to reduce copper distance and allow them to deliver DSL where they would normally not be able to do so. At the same time upgrade copper outside plant (OSP). Much better to install fiber then copper. The fiber will allow them to serve more customers and generate additional revenue.
IPTV is only going to be available to customers near the RT due to copper limitations.
While I would rather see a Verizon approach of rolling out a FTTP network seems like these guys have struck a reasonable balance of capital cost vs new services. Nothing wrong with bootstrapping.
/Tom |
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wifi4milez
In Need Of Garbage Pail Kids 1st Series
join:2004-08-07
New York, NY
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice
| reply to mogooder
said by mogooder :Its a Co-op, Its not about making money. mogooder Co-op or not, they still need to make money or the organization will cease to exist.
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я люблю Денди! |
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