3 ms·

why though?

• rayiner 6y ago
  There's no money in wired broadband. Investors have been trying to get Verizon to divest itself of FiOS pretty much since the beginning. It's probably profitable at this point, but barely. (Verizon's entire wireline division has a 5% or less profit margin.) Chatanooga Tennessee charges about $60/month for 300 mbps fiber. It is probably financially sustainable, but: 1) Tennessee is a low-cost, right-to-work state; 2) the capital costs of the fiber network were shared with the electric "smart grid" so some of the capital costs are being recouped from electric ratepayers. You couldn't make the same thing work in New York, San Francisco, etc. at the $60 price point. But at a much higher price point than that, you're talking about something quite expensive for what's supposed to be a public utility. Wired broadband, unlike water or electricity, is an optional service for most people. (1 in 6 high-income households only have cellular service.) If it costs you closer to $100 to have the same service in an expensive northern city, many people will opt out, and that will cause the per-household costs to skyrocket. It's a really tough mathematical equation to work out.
  • misiti3780 6y ago
    thank you!