tag:blogger.com,1999:blog-25089246.post114789214267220249..comments2024-02-07T08:30:28.786-08:00Comments on U.S. Telecom Infrastructure Crisis: Silicon Valley venture firms back start up planning universal wireless broadband serviceFred Pilothttp://www.blogger.com/profile/18352861125794506929noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-25089246.post-1147972818058865262006-05-18T10:20:00.000-07:002006-05-18T10:20:00.000-07:00The principle of "lowest hanging fruit" is at the ...The principle of "lowest hanging fruit" is at the core of all Venture Capital investments. The entrepreneur is motivated to go after the largest, most lucrative markets first (especially while their start-up costs are high, and they've yet to conquer the "learning curve."). That means they're not going to bother starting with rural areas, where installation costs are higher, reliability is tougher to achieve, and the return-on-investment is lower due to the lower population densities.<BR/><BR/>That having been said, most urban areas are served, now. So, where is M2Z's market? It's among people who're willing to sit through advertising, and accept a mere 512 Kb/s service. Do rural markets represent such a backwater than we're willing to stand for this kind of high-cost/low-service model?<BR/><BR/>Oh, and the equipment is non-standard, which means it'll probably come with a hefty up-front sign-up fee.<BR/><BR/>Color me skeptical, even with the Top Tier VC firms sinking money into it.Anonymousnoreply@blogger.com