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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: Ray Jensen who wrote (819)5/12/1997 6:17:00 PM
From: Sam Citron   of 12823
 
Ray, Tim & Other Last Mile People,

I recently came across an estimate that it costs about $125 per home for a cable operator to upgrade from traditional service to advanced HFC. nap.edu
This seems like a rather modest sum although, of course, this does not include the cost of a cable modem. If the critical issue is that cable companies are loath to make that investment if they are unsure about demand for advanced interactive services or internet services to enable them to recoup their investment (outside of a redlined affluent service area), then what about using the municipality's licensing of the local cable operator to help speed up deployment of this technology? Specifically, municipality says to cable licensee at franchise renegotiation date: "We feel that residential high speed internet access is very important to property values in our community. We will give you a choice: either you agree to upgrade the service by date X, or we will do so ourselves in conjunction with local investors." Although currently only 10% of my neighbors may be interested in paying for high speed net access, I may be willing to make the investment in order to make it feasible to upgrade my local node in return for a modest monthly payoff if and when my dark fiber neighbors begin to demand such services. They will then buy the service from me, a local investor, who will be piggybacking on the inertia of the cable operator.

I would be very interested in hearing your critiques of this outlandish proposal!

SC
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