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the_watcher | 3 years ago

Including the installation fee and $30/mo subsidy (I am assuming this means the price he receives is $30 higher than the one customers pay), my quick math shows it would take a bit over 71 months (almost 6 years) to hit $2.6M in total revenue. However, that assumes literally every customer chooses the $55/month plan, if everyone chose the $79/mo plan, it would take almost 51 months, or a bit over 4 years (obviously the number will be somewhere in between that).

Also, this math assumes no growth whatsoever in homes served or other revenue lines. I assume adding another home will be far cheaper than building out the core network, and the article itself notes other lines of business. To be honest, this doesn't seem like a terrible investment to me. There are certainly better ones in a pure ROI point of view, but for government investments? More of these please!

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s1artibartfast|3 years ago

You are completely ignoring any operating costs. For all we know monthly profit could be negative, and not 100%.

boplicity|3 years ago

You're also assuming a 100% conversion rate, in terms of homes being wired for access. That's a pretty big assumption!

pessimizer|3 years ago

He's serving 600 households afaik, not offering service to 600 households. So the assumption is that there's a 0% attrition rate. Pretty safe assumption for monopolies, or for local services with half the price and 5x the bandwidth of the other choices.