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When their break even point is well below 2 years going into debt is hardly a bad idea. In their situation debit is simply leverage and while it increases risk
by onemoreact 15y ago
When their break even point is well below 2 years going into debt is hardly a bad idea. In their situation debit is simply leverage and while it increases risk you can easily maintain profitability while borrowing significant amounts of money as long as your creating capital with that debt.
- matwood 15y agoThe article implies that laying cable in the ground is significantly more expensive than running it above ground. Hence the need to go into debt. The ROI timeframe will also likely change with the increased costs. The point I was making is that one of the most expensive parts of getting fiber to the home is laying the cable. In this case they were able to do a 'test' run to a neighborhood where they could just relatively cheaply run the cable above ground. I hope that their cost structure still works when moving towards more expensive rollouts, but given how we have seen other fiber rollouts get scaled back or fail I'm not so sure.