Saw an article on the Wall Street Journal dated Oct 24, 2007 - About Verizon FiOS.
http://online.wsj.com/article/SB119318239126769111.html?mod=telecommunications_primary_hs
Verizon has the right focus - Focusing on broadband services as opposed to just providing video services over IP or bundling (triple play/quad play).
It is interesting that the CAPEX spent by Verizon is apprx. $872 per home passed and they make approx. $100 per home per month. This would mean a breakeven in less than 9 months. Seem to be a good business plan. Of course the numbers do not include the SG&A costs, other expenses and the cost of service delivery.
These numbers should look better once Verizon thinks of other services they can offer to fill the pipes and they attempt to monetize the access capacity to the homes.
The comparative CAPEX per homes passed for AT&T is approx. $361 and for Comcast is approx. $250. These costs differences are due to the underlying technology the service providers chose as they bring such services to their market. It would be best if one knew the cost of operation (OPEX) of this underlying network. Any thoughts?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment