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That assumes that all other costs are fixed and not variable. Bell Canada as quoted (BCE), highlights that the financial math is actually “we can fire a lot of
by lstamour 6y ago
That assumes that all other costs are fixed and not variable. Bell Canada as quoted (BCE), highlights that the financial math is actually “we can fire a lot of people if we switch to fibre optic because maintenance costs are lower,” but not expressed in that language, of course.
The point then is that regardless of timeline, rolling out fibre optic is more profitable than not doing so, on a long-term basis.
Also, prices did not stay at $100, they actually jumped to well over $200 when you consider both the highest speed tiers and the sales of expanded television plans and digital services. It’s not impossible but it’s really, really hard to sell people premium 4K subscriptions to Netflix and other add-ons when you only offer 15/1 ADSL or have to start paying for two circuits to get VDSL, and that still neglects the very expensive infrastructure upkeep for copper-based networks, the variety of DSL modems in use, and other connectivity challenges posed by distance-to-CO problems.
Ultimately, fibre keeps customers happy and happier customers spend more. That’s the logic these companies should be using…