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I took another look at this. The $750 per house figure was actually for wiring the neighborhood without going into any homes, which costs an additional $600: >
by ryao 10y ago
I took another look at this. The $750 per house figure was actually for wiring the neighborhood without going into any homes, which costs an additional $600:
>In New York, Verizon said it costs about $750 per house to bring FiOS service to a neighborhood, plus an additional $600 to run the fiber into the home of a consumer who wants to purchase FiOS service.
Assuming 40% penetration (also in the article) and $600 on top, the cost is $2250, which is close to your $2500 calculation. I still think Verizon made that up over the course of 9 years. I just need to include the set top box rentals in the calculation. Assuming that my household paid $15 on average over 9 years more than the base tier price on average for the internet connection and each of the 3x $5 a month set top boxes that we had for 8 years cost Verizon $250 each, I get $2310. This is before considering that those should still be worth something and the principle that Verizon would not offer lower rates than their operating costs. That would be a great way to obtain negative margins.