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We're talking about the telecom industry-- if any group of competitors can stomach high fixed costs to reap future margins it's them. Launch new satellites, bui
by CapriciousCptl 7y ago
We're talking about the telecom industry-- if any group of competitors can stomach high fixed costs to reap future margins it's them. Launch new satellites, build new towers, lay new lines, whatever-- it's all the same Internet. Really, the story of Global Crossing's failure is instructive-- similar strategy of "low marginal cost, high fixed cost."
- gpm 7y agoThe future margins only exist if only one person succeeds in a given area, and the telecom industry is perfectly aware of this. It's the same reason why there are so many places in the US served by only one internet provider. I wouldn't expect there to be serious competition with the satellite provider for customers best served by satellites.