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$1.1m/year payback (20 years) $1,100,000/year, 40,000 households, so $27.50/year mean income per household to service the debt. If only 50% of households (you
by gonzo 8y ago
$1.1m/year payback (20 years)
$1,100,000/year, 40,000 households, so $27.50/year mean income per household to service the debt.
If only 50% of households (you said people) subscribe, then $55/year mean income per household to service the debt. If, again, as you state, no capital contribution from households below the poverty line, then, using your math (which, btw, double counts these), we're talking $110/year, or $9.16/sub/month to service the debt.
Here in Austin, there are three providers of 1gbps/1gbps FTTH internet, and all are priced just under $60/mo.
I think someone can probably figure out how to build a similar service in Boulder, paying the City of Boulder $10/mo per subscriber household, and still make fat rolls of cash.
- rayiner 8y agoThat $1.1 million is just for the $15 million initial phase, not the $140 million full buildout.
- 49bc 8y agoExactly. This makes so much sense for the city. This type of calculation doesn’t even include a fuzzy bump in technological growth for a city that’s connected with cheap fiber.
- realslimjd 8y agoThe monthly cost of fiber in Austin has gone up a bit since you last checked. Google and Grande charge $70/month. AT&T is up to $80.