Broadband Communities

JAN-FEB 2018

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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FTTH DEPLOYMENTS | B R O A D B A N D C O M M U N I T I E S | w w w. b r o a d b a n d c o m m u n i t i e s . c o m | J A N U A R Y / F E B R U A R Y 2 0 1 8 to do video, that it was the sticky service that would keep people from leaving. I was convinced, and we did video. I can't describe the mistake I feel like that was. Now, I don't have specific numbers based on facts, but I feel confident in what I'm about to say: 80 percent of our problems are video related, and I may be selling that short. It may be 85 percent or 90 percent. You absolutely have no margin to go along with that. Our other broadband services are subsidizing our video customers to the tune of between $6 and $7 per account. We were taking the margin off our broadband and subsidizing every video customer. Video programming costs are outrageous. e restrictions they put on you, you don't understand, but you have to live by them. I just cannot say anything positive about video, and even in rural Alabama, we're beginning to see people cut that cord and go to Amazon Prime and Netflix. It's happening, so video will die. We did have someone close by with a reliable quality service, and we got signal from them. We don't have a lot of money in our video today, so we'll be OK, but I could not imagine spending a few million dollars building a headend. As negative as my video story is, we're not sitting out here with a headend, so when it does go away, we won't have stranded costs in some of the infrastructure. AD: What is your long-term measurement of the success of this project? BP: If we can improve our reliability to the point that almost all our members have nothing but positive things to say, even about video, that's a success. It's about reliability, and here in the next month, we're going to begin offering a gig residential speeds. I feel like we have crossed the threshold where we're going to be OK now. e people we hired locally are more competent each day. You have to build up your personnel, because when you first get started, you can't just go steal the skill sets. You can't pay enough. You have to kind of grow your own workforce. at's what we've done. How do I measure success? Financially, we're stable. We're a nonprofit. We're not here to make money. We're very reliable, and we hope to get our gig service to a point that most of our customers can afford a gig to their house. v CoBank is a national cooperative bank that provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. OPTIMA™ OPTIMA™ C4 OPTIMA™ T OPTIMA™ S 440.366.6966 GOMULTILINK.COM DEPLOY YOUR NEXT FTTH PROJECT WITH THE OPTIMA™ SERIES Network Design Services Available OPTIMA™ C4 OPTIMA™ T OPTIMA™ S

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