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Too bad this analysis has nothing to do with delivering internet access to the home since the ISP typically just leases a few miles (or 10's of miles) of fiber
by Johnny555 11y ago
Too bad this analysis has nothing to do with delivering internet access to the home since the ISP typically just leases a few miles (or 10's of miles) of fiber to the local internet exchange point, rarely do they lay an 8700 mile undersea cable... and even if they do, they still need to build all of the infrastructure to get the network to your house.
I'd be much more interested in seeing what it really costs to build an operate an ISP with broadband service to the home (whether it's fiber or copper)
- rayiner 11y agoWe have some good data on how much it cost Chatanooga to build their network. About $330 million total. For roughly 71,000 subscribers, that's $5,000 per household. We also have good data from Veizon's public filings. Their wireline ARPU is $125 per month. Their EBITDA margin is 23%. Thus it costs about $96 per subscriber to operate their network, no including capital costs or interest.
- darksim905 11y agoSo what you're saying is they're making at least 100% profit on us once the buildout is paid off.
- deleted 11y ago[deleted]
- rayiner 11y agoHow do you compute that? What the numbers show is that most of the revenue goes to ongoing operation and maintenance. They have to pay for the original build with what is left over. With respect to Verizon, analysts are skeptical they'll ever pay off the build-out of fiber.