I may not have an MBA, but this seems a bit pricy.

Toggle sidebar Toggle sidebar
A

AFB

Lifer
Jan 10, 2004
10,718
3
0
Verizon is installing fiber to 1 million homes (mine included) soon. They expect to spend about $800,000,000 Yes, that is 800 million.


Edit: I suck at the copy, paste.

800 million % 1 million = $800 per house.

People pay about $35 for phone and probably $40 for fiber. Say 100% have phone and 30% have fiber.


(35 * 1 million) + (40 * 333,333) =~ $48,333,320

$800 million / $48,333,320 = 16.5 months worth of income.

I guess it's not that much. Your opinion?
 
KLin

KLin

Lifer
Feb 29, 2000
30,360
679
126
Verizon is installing fiber to 1 million homes (mine included) soon. They expect to spend about $800,000,000 Yes, that is 800 million.
Let me get this straight:

800 million % 1 million = $800 per house.

People pay about $35 for phone and probably $40 for fiber. Say 100% have phone and 30% have fiber.


(35 * 1 million) + (40 * 333,333,333) =~ $48,300,000,000

$800 million / $48,300,000,000 = 16.5 months worth of income.

I guess it's not that much. Your opinion?
Click to expand...

your math sucks
 
J

jagec

Lifer
Apr 30, 2004
24,442
6
81
Originally posted by: amdfanboy
Verizon is installing fiber to 1 million homes (mine included) soon. They expect to spend about $800,000,000 Yes, that is 800 million.
Let me get this straight:

800 million % 1 million = $800 per house.

People pay about $35 for phone and probably $40 for fiber. Say 100% have phone and 30% have fiber.


(35 * 1 million) + (40 * 333,333,333) =~ $48,300,000,000

$800 million / $48,300,000,000 = 16.5 months worth of income.

I guess it's not that much. Your opinion?
Click to expand...

BTW, 1 million=1,000,000. Therefore, 30% of 1 million homes is 300,000. Not 333,333, and certainly not 333,333,333.
 
T

TechnoPro

Golden Member
Jul 10, 2003
1,727
0
76
Originally posted by: amdfanboy
Verizon is installing fiber to 1 million homes (mine included) soon. They expect to spend about $800,000,000 Yes, that is 800 million.
Let me get this straight:

800 million % 1 million = $800 per house.

People pay about $35 for phone and probably $40 for fiber. Say 100% have phone and 30% have fiber.


(35 * 1 million) + (40 * 333,333,333) =~ $48,300,000,000

$800 million / $48,300,000,000 = 16.5 months worth of income.

I guess it's not that much. Your opinion?
Click to expand...

Error in bold.
 
J

jagec

Lifer
Apr 30, 2004
24,442
6
81
Originally posted by: PoPPeR
i would be horrified if you had an MBA after reading this thread
Click to expand...

dude, they give MBAs out like candy, why do you suppose drunken fratboys are ALWAYS business majors :D
 
P

PoPPeR

Diamond Member
Oct 9, 2002
6,993
0
0
also, I don't even understand what your answer is trying to say. Are you saying that it would take Verizon 16.5 months (if the math was correct) to recoup the costs of their fiber installations from those 1 million people?
 
P

PoPPeR

Diamond Member
Oct 9, 2002
6,993
0
0
Originally posted by: jagec
Originally posted by: PoPPeR
i would be horrified if you had an MBA after reading this thread
Click to expand...

dude, they give MBAs out like candy, why do you suppose drunken fratboys are ALWAYS business majors :D
Click to expand...
I hope they're still giving them out like candy when I go for mine in the next decade
 
S

SportSC4

Golden Member
Aug 29, 2002
1,152
0
0
they will also make money on the fiber optic line by leasing it to other companies and small businesses (who will be paying more than 40$ a month, look at the monthly costs of ISDN, T1, etc).

a lot of the backbone of the fiber optic line is currently going unused because they aren't connected to anything, might as well use it, right?
 
Z

z0mb13

Lifer
May 19, 2002
18,106
1
76
verizon can also let other providers to use their network (for a fee of course)

oh and by the way they dont hand out mbas

 
IEC

IEC

Elite Member
Super Moderator
Jun 10, 2004
14,600
6,084
136
Originally posted by: amdfanboy
Verizon is installing fiber to 1 million homes (mine included) soon. They expect to spend about $800,000,000 Yes, that is 800 million.
Let me get this straight:

800 million % 1 million = $800 per house.

People pay about $35 for phone and probably $40 for fiber. Say 100% have phone and 30% have fiber.


(35 * 1 million) + (40 * 333,333,333) =~ $48,300,000,000

$800 million / $48,300,000,000 = 16.5 months worth of income.

I guess it's not that much. Your opinion?
Click to expand...

With the math done correctly:

Expenditure for infrastructure: $800,000,000
Gross income for phone a month: $35,000,000 (35x1,000,000)
Gross income for fiber a month: $12,000,000 (40x300,000)

That's 47 million a month gross from phone and fiber optic, so with no other expenses involved it comes to roughly 17 months before they recoup the cost of the infrastructure... but the payoff will likely take more than double that time... 3 years at least I'd say... :Q
 
UncleWai

UncleWai

Diamond Member
Oct 23, 2001
5,701
68
91
$800 million worth of fiber lines don't go disappear after the company pays for it, it's an asset to the company.
 
Z

z0mb13

Lifer
May 19, 2002
18,106
1
76
Originally posted by: UncleWai
$800 million worth of fiber lines don't go disappear after the company pays for it, it's an asset to the company.
Click to expand...

and its probably financed using cheap debt (well not that cheap)
 
J

jagec

Lifer
Apr 30, 2004
24,442
6
81
Originally posted by: z0mb13
Originally posted by: UncleWai
$800 million worth of fiber lines don't go disappear after the company pays for it, it's an asset to the company.
Click to expand...

and its probably financed using cheap debt (well not that cheap)
Click to expand...

Not to mention tax writeoffs are worth a LOT more to corporations than (most) individuals...they probably SAVE money by going into debt.
 
Z

z0mb13

Lifer
May 19, 2002
18,106
1
76
Originally posted by: jagec
Originally posted by: z0mb13
Originally posted by: UncleWai
$800 million worth of fiber lines don't go disappear after the company pays for it, it's an asset to the company.
Click to expand...

and its probably financed using cheap debt (well not that cheap)
Click to expand...

Not to mention tax writeoffs are worth a LOT more to corporations than (most) individuals...they probably SAVE money by going into debt.
Click to expand...

its not tax writeoff, its tax shield

companies get a tax shield of the interest payments that they make

 
ElFenix

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,398
8,568
126
Originally posted by: PoPPeR
i would be horrified if you had an MBA after reading this thread
Click to expand...

seems about average for an MBA, actually
 
Evadman

Evadman

Administrator Emeritus<br>Elite Member
Feb 18, 2001
30,990
5
81
Originally posted by: z0mb13
Originally posted by: Evadman
MBA = teh dumb. I agree with ElFenix for once. :p
Click to expand...
uhhh why?
Click to expand...
With the exception of one person, everyone I have interviewed or met that had a MBA was dumber than a box of rocks; and rocks are pretty dumb.
 
A

Ameesh

Lifer
Apr 3, 2001
23,686
1
0
Originally posted by: Evadman
Originally posted by: z0mb13
Originally posted by: Evadman
MBA = teh dumb. I agree with ElFenix for once. :p
Click to expand...
uhhh why?
Click to expand...
With the exception of one person, everyone I have interviewed or met that had a MBA was dumber than a box of rocks; and rocks are pretty dumb.
Click to expand...

the only mbas that count for anything are ones from a top 20 school and have at least 5 years of industry experience.
 
You must log in or register to reply here.

TRENDING THREADS

COMPANY
RESOURCES
FOLLOW
Top Bottom