It's actually more like "Company A will drop prices to $40/mo in your coverage area as soon as you start your build-out". Company A has already sunk cost into t

It's actually more like "Company A will drop prices to $40/mo in your coverage area as soon as you start your build-out". Company A has already sunk cost into the infrastructure so they can afford to do this and remain cash-flow positive. As soon as you go out of business they know they can just raise the price again. For this reason, "overbuilders" tend to target high-income areas where additional bundled services increase the ARPU (annual revenue per user) beyond the base service. There's also usually a higher "take rate" (subscribers per total homes served) in high-income areas. The up-front capital investment required to build out telecom services is absolutely staggering -- we're talking billions for even a small area of a city.