Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (9206)	11/20/2000 1:26:47 PM
From: TheStockFairy	Respond to of 12823

Distance was a known factor to anyone that has tried or attempted to order a DSL line. Let's try and run the normal numbers (using estimates and averages): $70,000 NRC for Central Office Build outs $2300 MRC for DS-3 from DSL POP to Central Office $6000 MRC for RBOC collocation at each central office (power, space, ect) $0025 MRC for RBOC DS-3 X-Connect at Central office $2800 MRC for 3 racks at a carrier neutral hotel $3000 MRC for O & M costs associated with the network $3000 MRC for internet access connection $3000 MRC for backbone costs (connecting NY to LA via long haul) $20,115 estimate monthly costs (anyone, please add other costs I have excluded or overestimated) Average sales price per line (for sake of argument) is $100. That would mean they would have to install roughly 200 lines per central office in order to break even, plus an additional, lets say 600 lines per central office to make up for the NRC costs within the first two years. Then, you would have to add a bunch of lines for SG&A costs. Lets say, to make up for SG&A costs you replace the 600 lines after year 2 that you earmarked for NRC costs and say that those, and an additional 200 lines will cover all costs. So, to make it easy, lets use 1000 dsl lines per central office to break even. Say they roll out to 1000 central offices coast to coast. This would mean that a DSL provider would need roughly 1 million customers to break even. Does that sound right? I was trying to lowball on most costs.