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Summary:

Boston Globe interviews Verizon’s Bob Ingalls about its’ fiber-to-the-hope project. “We have not announced publicly the cost, but you can do the math. We’re going to pass 3 million houses, so it’s definitely cost with a “b” in front of it, not an “m” in front […]

Boston Globe interviews Verizon’s Bob Ingalls about its’ fiber-to-the-hope project. “We have not announced publicly the cost, but you can do the math. We’re going to pass 3 million houses, so it’s definitely cost with a “b” in front of it, not an “m” in front of it. A million premises at $1000 each,” he says. Read Blinded by Speed, and decide for yourself!

  1. Charlie Sierra Sunday, July 25, 2004

    This obsession with “Fiber to the Curb” sounds an awful lot like the telecom industries version of MAD, aka mutually assured destruction.

    There’s an old saw about how if I owe the bank $500 and fail to pay, its a matter of my honor, but if I owed $500m and fail to pay then its mostly the bank’s problem.

    I just can’t reconcile how this large network investment pays off for anybody, so perhaps the thinking must be, if we damage the business bad enough, then the Gov will have to capitulate to our regulatory demands. I mean thats crazy, but so is flushing $3B down the drain for an experiment.

    I supposed it has never occured to any VZ execs that this money actually belongs to shareholders?

    On an even larger note, I’m all of de-regulation, in theory, but if we look at the results in recently de-reg’d high capital investment businesses (airlines, power to telecom), the results are modest. The problem seems to be that over the short term, the private sector demostrates very poor capital stewardship, and this includes the economy’s real drug dealers, aka Wall Street.

    PS. Remember the good ole days when Investment Bankers would hang out around Elementary schools just to push an IPO, or float some Bonds. Psst, Hey kid check out these Zero-coupons. Here give some to your friends….

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  2. Desparation is definitely what it sounds like – I guess the question is what else can they do to keep any kind of a hold on the customer. I think it’s definitely a MAD proposal, put forward by people who can’t figure out what else to do.

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