Monday, February 22, 2016

Telco CEO offers succinct description of FTTP market failure at network edge

Cincinnati Bell to Slow Fiber Build by 2017 | DSLReports, ISP Information: "Our buildout of fiber is 100 percent success-based and as long as we see the returns that are appropriate we're going to continue to build," Cincinnati Bell CEO Ted Torbeck told attendees of the company's earnings call.

"We anticipate by the end of the year we'll be somewhere over 60 percent and we fully anticipate that we'll be getting close to the upper range where in 2017 our build will decline significantly. The cost of the build is increasing as we expected as we build out and we're getting to the edge of the buildout and it's getting more expensive," the CEO added. "Once we reach the threshold where the margin decreases to the level is acceptable we'll stop the build.
A very succinct description of market failure in the words of a telco CEO that explains why private market forces cannot ensure the ubiquitous fiber to the premise infrastructure needed in the 21st century.

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