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This assumes 100% gross margin. If they are buying a bundle, you probably mean TV, so they are going to have to pony up to the networks. Then they'll have to pa
by gibybo 13y ago
This assumes 100% gross margin. If they are buying a bundle, you probably mean TV, so they are going to have to pony up to the networks. Then they'll have to pay for upstream (I don't think AT&T etc is going to freely peer with a 750k residential/commercial network), then they'll have to pay for all the support costs associated with running a fiber network.
I'm thinking they'd be lucky to be able to use half of $18.5M/MO to pay off their $5B investment. We're now at 50 years! And that assumes they can keep their price high despite technological advancements over the next half-century (imagine paying $150/mo for an internet connection using technology from 50 years ago). Oh, and they have to wholesale it to their competitors. There is 0 chance this is happening with these numbers.
- callmeed 13y agoYes, good point. My thought with a bundle was TV, land-line phone/fax (businesses especially still need this), and possibly even mobile service because I'm assuming AT&T and Verizon are on the short list of vendors anyway. My short list of vendors who are capable-and-possibly-dumb-enough to consider this are: AT&T, Comcast, and Verizon. On the other hand, some tech companies with streaming deals/services could maybe do this without any bundle. Could even force some networks to get with the times. So my shot list of vendors who are awesome-enough-but-probably-way-too-smart to consider this are: Amazon, Netflix, Google & Apple.