Comment by treis
3 years ago
Telcos aren't really that great of profit making machines. It's a capital intensive business that requires a lot of scale before making money.
Look at what this guy is doing. Many millions to get 600 customers paying <$100 a month.
As the old adage goes...it takes money to make money.
A couple mill up front to get 500k+/yr means ROI of 5 years.
It's a sustainable model as long as you don't get greedy and I don't think this guys is doing this to be a 'gazillionare' :-)
It’s not even his millions.
> Jared Mauch gets $2.6 million from gov't to expand fiber ISP in rural Michigan
His millions were funded by the government.. and the legacy providers also could bid on the contracts. It’s not clear if he’s expected to pay off those funds or not (I assume not). As the saying goes, the best money is someone else’s.