The Clearworks guys seem to be going about it the right way - i.e. targeting new construction upper-end subdivisions.
We have two such subdivisions in our neck of the woods, same approach (don't know if Clearworks or whoever).
What makes this approach work a whole lot better than trying to retrofit existing 'hoods is:
1. Cherry-pick the right demographics.
2. Bundle the necessary services so that the whole package is presented to the potential homeowner at the time of house purchase as part of the basic purchase. With the right demographics and pricing, an initial 90% uptake rate at time of home purchase is not improbable.
3. Laying ftth in new construction is orders of magnitude less expense than retrofits.
4. In new construction it may be easier to preempt competing technologies, as long as the services package can be delivered.
5. With new construction, especially in suburban areas or outside of strict city limits, where the developer controls the land (especially here in the great State of Texas), there is a whole lot less municipal B.S. and redtape wrt franchise fees, equal access, etc.
The ftth guys who target the large numbers of Class A new multi-family construction have the same idea.
Churn rates will have to be watched.
Correspondingly, those folks who are starting in the poorest and oldest section of Austin in order to show the City Council their "good faith" will be screwed.
P.S. One other factor in favor of the new construction guys in new suburban developments is that typically DSL is not available, and cable is hard to get in the outlyings, as Time-Warner won't roll the trucks unless there is sufficient actual customer orders, which there won't be because the Clearworks types got in first. So if you are a homeowner candidate, for a $200+ home in the boonies, you will be attracted to a subdivision that offers the Clearworks service. Thus, there's a certain degree of customer "self-selection" that contributes to the 90% claim. |
