Comment Re:This is evil! (Score 5, Interesting) 90
Your sarcasm aside, from TFA it looks like the town in question borrowed ~$1900 per person (NOT per household) to put in the system. They'll get that back with taxes eventually, but it's not clear whether the taxes will be on the locals or Statewide. Assuming a five year note, average household size of four, and the costs paid entirely by the locals, that should about double the $65/month that is the nominal cost of the system.
It says it's a town of 1900 people at the top, 800 premises so an average of 2.4 per household. They're borrowing $3.6 million which works out to $4500/household, but five years is generally too short. Most estimate that a buried fiber will last 30-40 years, if we say 20 years then it's an extra $20/month in taxes. Seems like a fair price, near my cabin they're building out to ~1200 premises for $5.2 million with a mix of government funding and extra sign-up fee, though the most part is covered by the fiber company who'll profit for decades to come. Still, if all goes according to plan I can get gigabit there at the end of the year and "only" 100 Mbit at home...
I work for an ISP. You're wrong on almost every point.
Most infrastructure repair costs are for what we jokingly call the "Backhoe disconnect"
We're talking upwards of 90% of our repair costs are construction related. And before you say it, no, they don't pay us back for it. It's almost always the city that cuts the cable, they can't afford to pay us, and if we tried to make them they'd issue a press release the next day stating "We're laying off 1 police officer and 2 kindergarten teachers to pay off your Nazi ISP, sorry" and we'd be driven out of town with pitchforks.
Further, Fiber does have a lot of longevity, you are correct there. But what doesn't have a lot of longevity is wired internet service as a whole. By 2025 we'll start seeing the first 5g cellular plans they'll offer 1gig+ service for a lower price and using less spectrum than 4g. When that comes along, the residential side of my industry will die. The financial people have to plan for that, and would be idiots if they approved infrastructure projects to invest in that part of the buisness. We'll still have a lot of business services, and we are, of course, the trunks between those cellular towers. But the industry as a whole has been exiting the residential market lately. It's becoming less and less profitable. Even televisions services are a losing proposition. The tiered television services ensure that TV is VERY expensive and the only people getting those profits are the channel executives. This is why all the cable companies are trying to merge now... they want to be big enough to fight those big content providers like Viacom.
Long story short, focus your ire on the cellular industry. They will be your ISP in 10 to 20 years and you'll have forgotten all about us.