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Agreed, at this point the wired services are not profitable and they want to let the plant rot as you said. I agree, there needs to be a mix of fiber and wirel
by zw123456 11y ago
Agreed, at this point the wired services are not profitable and they want to let the plant rot as you said. I agree, there needs to be a mix of fiber and wireless. The emphasis on wireless is because it is seen as being more profitable, however that is eroding quickly. Perhaps Google fiber and similar initiatives will spark some more activity around FTTH, FTTN.
- Aloha 11y agoI actually disagree that wireline services are not profitable, they are profitable, generate a very stable rate of return - but they are not generating the rate of return, and more importantly growth rates the market expects. Because of this, Verizon is trying to starve them to make its balance sheet look better - which in the short term works, but it will also hasten the demise of what is a somewhat lucrative revenue stream. FTTN Makes the most sense in dense and semi dense urban and suburban areas - FTTH/P makes more sense in very rural places, I'm seeing movement on FTTP by CenturyLink, Frontier seems very interested in expanding its existing FTTH footprint, but is not doing so yet.
- zw123456 11y agoThat's probably about right, the margins are just not what Wall Street demands these days.
- Aloha 11y agobecause its so capital intensive, I don't think there is anything you can do to make the rate of return better either. That's the trouble, its a good stable business, but no longer in vogue.