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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: MikeM54321 who wrote (9690)12/12/2000 11:19:09 AM
From: Frank A. Coluccio  Read Replies (1) of 12823
 
Mike, re:

"Wow. 70 homes for $680K. That makes it $9,714/home! I understand that it's not a totally fair comparison(since the number of homes is so small). And I wonder what this cost includes. Just running the fiber with the associated PON equipment, right? If so, is it really that expensive?"

Obviously,not... as you, yourself, begin to acknowledge. The lump sums discussed in that city manager's report are astoundingly unqualified. They are misleadingly assigning and ammortizing the costs over a base of 70 homes for the entire build, including all common equipment, nodes and fiber backbone capacity, not to mention one-time mobilizing costs that contractors face.

These same one-time, common costs would go towards facilitating the networking needs of thousands more homes, with the remaining incremental costs for those homes coming in under $1,000, arguably, depending on specifics.

I was mildly amused, if not somewhat amazed, at the fact that those considerations weren't spelled out in the report. But I could understand the concerns of the city council people if it's a trial. If it's a trial they don't necessarily know that there will even be any incremental homes served.

While I'm glad that you pointed this out (I almost made an issue of it too, but I got sidetracked with other thoughts last night), but IMO your linked post should _not_ serve as an archival reference for how much FTTH costs. Not by a very long shot.

FAC
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