I'm with Ken on this. $50/sub does not seem possible. That doesn't even
cover the ONT. I might believe $500/sub, but that might be a stretch
depending on the neighborhood.
Wasn't the $250 million a quarterly number though?
bp
<part15sbs{at}gmail{dot}com>
On 8/27/2016 8:47 AM, Ken Hohhof wrote:
Your numbers are confusing me, $250M for 5M subs would be $50 per
sub. And supposedly Google spent $1 billion on Kansas City alone and
the number of $1000 per sub is thrown around for urban FTTH.
It also seems Rory is including the cost not just to build out FTTH,
but to do it on an accelerated schedule and to do the marketing and
promotions to get to 85% take rate.
Another takeaway I haven't heard much discussion about is that
reportedly Google TV has been a dismal failure. I'm not sure what
their subscribers are using for their TV, probably OTT services?
-----Original Message----- From: Chuck McCown
Sent: Saturday, August 27, 2016 10:23 AM
To: [email protected]
Subject: [AFMUG] Fw: Google Fiber information
I don't know why you would think it takes $250M to do 5M subs. I do
construction in high density residential all day long at 5-10% of that
cost.
-----Original Message----- From: Chuck McCown
Sent: Saturday, August 27, 2016 9:00 AM
To: [email protected]
Subject: Re: [AFMUG] Google Fiber information
I am talking about Eagle Mountain Utah. Lots of starter homes and super
stingy young Mormon families. 85% happens. It truly does.
-----Original Message----- From: Rory Conaway
Sent: Saturday, August 27, 2016 8:57 AM
To: [email protected]
Subject: Re: [AFMUG] Google Fiber information
I understand that there are areas where you might have an 85% but that
was
before the days of half of all households have someone on public
assistance.
And if you notice, Google only cherry picked high income areas. If I
targeted only Scottsdale with houses that average $1M and up and my
competitor was crap, I'd get a high uptake also. Most of our areas are
middle class, lower-middle class, and even below that. Budget matters,
people are skeptical, and the effort needed to convert them is much
higher.
As for the 5M number being realistic, depends on the investment and the
market. If you are just targeting residential internet, it's going to be
very, very expensive, like north of $250M to get there within 5 years
unless
you just buy everyone up. But there are a lot of people in this
country and
with average incomes at $30K, a lot of opportunity. I also believe it's
possible to go much higher than that. DSL is collapsing and the cable
companies are following the same stale path they always do without any
real
innovations.
Rory
-----Original Message-----
From: Af [mailto:[email protected]] On Behalf Of Seth Mattinen
Sent: Friday, August 26, 2016 11:15 PM
To: [email protected]
Subject: Re: [AFMUG] Google Fiber information
On 8/26/16 6:05 PM, CBB - Jay Fuller wrote:
i thought it was a rooter?
Only in Canada.
