Broadband Communities

AUG-SEP 2017

BROADBAND COMMUNITIES is the leading source of information on digital and broadband technologies for buildings and communities. Our editorial aims to accelerate the deployment of Fiber-To-The-Home and Fiber-To-The-Premises.

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Page 45 of 66

AUGUST/SEPTEMBER 2017 | | BROADBAND COMMUNITIES | 37 which, in turn, requires building owners to invest in good wireless infrastructure. In non-bulk buildings, resident churn creates a hidden cost for deployers. A group of unrelated renters tends to be unstable even when each individual has a good income. As residents move in and out of apartments and swap roommates, the actual monthly broadband revenue deployers earn tends to stay close to the promotional price. No longer can deployers depend on higher revenues from residents who have completed promotional terms. What's the penalty? Between 12 and 30 percent of "full price" revenue – and the 12 percent is for short promo periods of three to six months. Even a 12 percent hit can destroy all profit potential. ( Broad B and Communities offers free monthly cash flow models to help providers do their own calculations. Look for Calculating Your Revenues Housing Units Started, in Thousands (2017 data estimated from January-July seasonally adjusted numbers) Privately Owned Housing Starts, 2004–2017 Source: U.S. Census Bureau Total 1 unit 5+ units 0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Chart 1: Construction of multiple-dwelling-unit buildings with five or more residences has recovered; the overwhelming number of new units is actually in buildings of 20 or more units. In this chart, the roughly 12,000 annual construction for MDUs of two, three or four units is omitted.

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