Lachman's numbers are wrong. Not that those numbers are innaccurate, but that they aren't comparing the right numbers. According to Lachman, the price to connect a single home via fiber is $1250. The price that Google is selling it's service for is $70 a month. If there is no maintenance cost, the return on investment starts happening at month 18 of service. Assuming maintenance costs are a little less than half the installation costs, that gives us around $600 per year.
Cost to Connect: $1250 - $300 = $950
Cost to Maintain/Year: $600
Price/Year: $840
So, assuming that the income chart looks sort of like this, then the point at which it becomes profitable is 4 years. And this assumes that Google doesn't get more efficient.
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Lachman's numbers are wrong. Not that those numbers are innaccurate, but that they aren't comparing the right numbers. According to Lachman, the price to connect a single home via fiber is $1250. The price that Google is selling it's service for is $70 a month. If there is no maintenance cost, the return on investment starts happening at month 18 of service. Assuming maintenance costs are a little less than half the installation costs, that gives us around $600 per year.
Cost to Connect: $1250 - $300 = $950
Cost to Maintain/Year: $600
Price/Year: $840
So, assuming that the income chart looks sort of like this, then the point at which it becomes profitable is 4 years. And this assumes that Google doesn't get more efficient.