Comment by rconti
6 hours ago
It doesn't justify the cost when they can just rip you off, charging the same amount for a fraction of the bandwidth.. unless and until there's competition.
Funny how quickly my internet options went from expensive cable internet, to 1 gig symmetric fiber for $90, to 10 gig symmetric fiber for $50. And now, magically, Xfinity has 1Gbps+ service for $50 as well.
I most certainly don’t have 1 Gps+ service for $50 though in practice my circa 50-100 Mps service for about twice that works fine does for me from Xfinity. I care a lot more about reliability.
> It doesn't justify the cost when they can just rip you off, charging the same amount for a fraction of the bandwidth...
You can start a company right now and lay fiber in these places and start your own telecom.
You probably don't have the money for that but, if you put together a solid business plan, a bank would give you a loan.
You may not have the experience or expertise to do that, but there are plenty of people who do.
Why hasn't that happened yet? It turns out that laying down miles of fiber for a handful of customers isn't profitable.
Google dod it in a few places that were low hanging fruit. Places that had telephone poles where they could get relatively easy access to them.
There are certainly places where access to those poles is more difficult than it should be but most places are hampered by either being too remote to justify the cost of burying lines to a few customers (rural areas) or the digging is too expensive to many customers (suburban areas) because they'd be digging up streets.
Profitable vs unprofitable is not black and white. No doubt there are some places where it's simply not profitable to run the fiber today.
However, there are a TON of places where the business strategy you outline is a great idea, and would be profitable.
..... until the incumbents lower their outrageous prices in the face of the competition, and bam, now your business model is no longer profitable.