Re: Level 3 blames Internet slowdowns on Technica

[Gary Buhrmaster <gary.buhrmaster () gmail com>]

On Tue, Mar 25, 2014 at 3:56 AM, Naslund, Steve <SNaslund () medline com> wrote:
> You are right but that is usually how it works with fiber because that last drop to the home is a pretty expensive 
> piece that you don't usually want installed until it is needed.  The LECS usually don't even light a building unless 
> there is a service that requires it.  I was trying to make the point that $700 - 800 per premise as quoted seems 
> extremely low to me.

If one believes the estimates from the Google Fibre rollout in Kansas City
(and I suspect they are all wrong, but they probably have the magnitude right)
the cost was (about) $600/premise passed.  As you point out, the passed
part is important, and did not include that last 100 yards of install and
equipment.  But that last 100 yards (and equipment) does not need to be
spent until a subscriber signs on the dotted line.  So the order of magnitude
to pass a premise is roughly consistent between this known example of
a recent build-out, and Jay's numbers, with all the right stars in alignment
(I believe Google Fibre got agreements in advance regarding abbreviated and
expedited zoning and permitting, which would likely have substantially
decreased their costs (having seen how long/expensive that can take, I
can understand why they wanted those agreements in place up front)).

Now, whether a city would want to float a 30 year bond for city fibre, or
for a new ballpark, or a new pier (or do all three and increase taxes by
maybe 10%) and trust that "if you build it, they will come" is a different
question.