>>You have to believe that. I can show you a video card I paid $1700 for that can be replaced for less than $50 today and it wasn't that long ago. I can give you a zillion examples just like that.<<
That's right. It's all about managing risk. One component of risk is not investing soon enough, and the other is having too much capital on the books that is not returning income, while the costs of those same capital items continue to decline.
It's a game of managing risks, and just in time deployments of crucial parts which cost more, not stocking up too soon, while pricing continues to fall.
We don't simply go out and mount an STB and side-of-the-house device to every passed home regardless of whether they've subscribed or not, now.. do we? Of course not.
Conversely, risk exists in having assets on the books which reach exhaust levels prematurely, too. What would the same level of expenditure get me if I'd used fiber instead of HFC or MMDS, etc.?, is one question that some analysts are going to begin asking, soon, as the costs for each cross-over with the declining costs of optical. And what types of new services can I now bill for with fiber that would be unthinkable with HFC or MMDS? In low teledensity areas, should I have used hybrid fiber/wireless instead of bringing fiber all the way up to the living room, or garage?
FAC |
