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To: FR1 who wrote (22763)5/31/2000 7:50:00 PM
From: matt gray  Read Replies (3) | Respond to of 29970
 
frank,

Do you know of a multiplexer that is available in production which will deliver TV, internet and phone? If so what does it cost? Say the subscriber has a $100 per month bill. Add your upgraded outside plant costs at $1500 per subscriber and you just paid $3000 per subscriber. Please add in the headend multiplex equipment as well. Also figure the cost of money at around 13%. Throw in payroll and expenses.

My point is there is not alot of margin to justify the expense of FTTH.... where is the money gonna come from?



To: FR1 who wrote (22763)5/31/2000 8:38:00 PM
From: gpowell  Read Replies (2) | Respond to of 29970
 
AOL has a problem with churn, as long as their churn rate stays in the 2-4% range per month (I haven't seen any figures for several months), their N. American subs growth will soon come to a screeching halt.

I would expect to see AOL pursuing strategies aimed specifically at reducing churn.