On Monday, March 24, 2014 04:26:11 AM Naslund, Steve wrote:
If you are going to try to do a fiber build out to the home, what would be the monthly cost of just the cable if I cannot sell services on it and is anyone will the pay the much. If I have to pay something like say $40 a month for a fiber connection, how much is service and equipment going to cost on top of that? If you have the choice of being a service provider or an infrastructure provider, why would anyone in their right mind want to be the infrastructure provider. The infrastructure guy eats the lion share of the capital expense and takes all of the risk that someone at the home will continue to want the service. That separated model just does not work except in the case of the ILEC which has capitalized that network over the last 50 years.
All dark fibre providers I know of, that eventually start off as pure dark fibre players, will eventually enter into the services game. Even those that do so cautiously, but only deploying DWDM spectrum before to maintain the "darkness" of the fibre, will eventually add yet more serices on top of that. It's just like how wholesale providers have to, at some point, look into enterprise business. You can't just survive being an infrastructure-only provider, in the long run. Mark.