3 ms·
Back at the start of the decade, i followed a certain startup in Moscow closely [1]. They wanted to provide 4G to the city. For perspective, back in 2009 there
by Artlav 10y ago
Back at the start of the decade, i followed a certain startup in Moscow closely [1]. They wanted to provide 4G to the city.
For perspective, back in 2009 there wasn't even 3G in Russia - the frequencies were all owned by the military, and companies were still trying to wrestle them.
The most interesting part was the scope of the project - the startup nearly went broke not for the need to install 4G equipment, but for the need to build an entire fiber backbone to power that equipment. They invested heavily into building the network that would carry the mobile traffic to the internet al large.
They nearly went broke... And then they became the only service provider giving 4G in a 12 million soul city that knew nothing better than GPRS. It didn't last long, but for a time they more or less had a license to print money.
Last time i checked, that backbone they built is still used by every other provider that built a 3G/4G network since then.
So, yeah. Fiber was the right investment.
[1] https://en.wikipedia.org/wiki/Yota https://en.wikipedia.org/wiki/Yota
- jseliger 10y agoIt didn't last long, but for a time they more or less had a license to print money. My impression, perhaps wrong, is that most people won't build large, fixed infrastructure in Russia for fear of it being seized by the state or someone with state backing (see e.g. http://www.institutionalinvestor.com/article/3427198/banking-and-capital-markets-emerging-markets/bill-browder-puts-putin-on-notice-with-expos-of-corruption.html#/.V60PVI7NATk http://www.institutionalinvestor.com/article/3427198/banking...).
- rayiner 10y agoI wouldn't build a Fiber network in the current U.S. climate for the same reason.
- foota 10y agoReally? While you might be required to lease it at market rate I don't see where the gov't would allow or help someone to seize it.
- eksu 10y agoIsn't that just as bad as it getting seized though? Is this 'Market Rate' the same 'Market Rate' you get reimbursed when you loose your place to civil forfeiture?
- Natanael_L 10y ago*Eminent domain
- deleted 10y ago[deleted]
- otterley 10y agoYou realize they'd have to pay you to condemn it, right? Unlike Russia, we have the Fifth Amendment.
- iofj 10y ago> So, yeah. Fiber was the right investment. Not from an economic perspective. There is a saying in the telecom industry : "How do you make a small fortune with laying fiber ? Start with a large fortune"