I don't understand why Verizon has chosen to go with only FIOS.

I think I tried to explain this at some point.  I'll try it again.

We get a greater rate of return from an all optical network, frankly.

Yes it costs more to deploy and not everyone will choose to take
it.  That is called "take rate".  We obviously want a high "take
rate".

We balance that against "pass rate".  That is how fast we can
build it out.  A lot of people, surprisingly more than you think,
don't really want it, but we aren't going to cut off their normal
service if they don't wan't FiOS.

This we have to factor against rate of return compared to
capital investment over time.

Ultimately, an optical network is going to cost much less than
a copper network to maintain.  We know the maintenance
costs of a copper network are extremely high compared to
rate of return on a state of the art optical network.

And potentially worth the capital investment, which if we want
to survive as a telecommunications company we have to do
anyway.

We don't see Euro style DSL as being a viable model because
relatively speaking we have a very much larger area to cover
and a lower relative population density.

We do DSL.  But it is high maintenance over limited range.

And we have to deal with some very pesky regulatory issues.

Better to install the best that you can where you can than to
go with a halfway approach.  We want to be the TV, Internet,
and phone provider of choice, who wouldn't.

So the answer to your question is that we expect to eventually
make a profit, I guess.

And we won't do that by thinking small or going with halfway
solutions.

Nothing that I say about any of this reflects the ah, opinions
or policy of anybody but me, of course.


*************************************************************************
**  List info, subscription management, list rules, archives, privacy  **
**  policy, calmness, a member map, and more at http://www.cguys.org/  **
*************************************************************************

Reply via email to