How one intelligent telco person sees NVEI's tech.
I asked a telco person that I respect alot to take a look at the recent PR and tell me what benefit he might see of the tech to telcos. His response; (I deleted the names of the cities)
"Here is the million dollar question. What is the cost to a Tel. Co. to install this equipment? With most companies like Tel. Co.'s and Cable TV providers, they seem to be going with fiber optic cable to the home and services like Digital Subscriber Line (DSL). Cost is the key question. Residential customers will not pay premium prices for faster internet. Business customers who will pay can afford fiber optic high speed connections which do not use copper.
This technology seems to be applicable to the residential and small business user. This can be a wonderful product, but not too many homes will be interested if it costs $1000 a month.
Tel. Co.'s will look at the cost of this product and see if the investment is worth it in terms of where they want to go. If this product will cost $100 to deploy to get 90 Mbps and it will cost $150 to deploy a faster fiber optic technology, they will go with the fiber optic because that is the faster technology in the long term and will take them to a higher level in the long term.
This product may be useful for areas that will not get fiber in the short term. The question is will there be enough customers in these areas to create a great demand for the product. For example there are more high capacity customers in "big city" than "small town". "Big city" customers will get fiber optic service before "small town" customers. So will there be enough "small town" customers to buy this product. This is just a simplified example.
Here is what I can tell you for sure. In the Telephone/Internet industry there is a great shortage of money to invest. Companies will look very long and hard at any new product before they buy it and it has to fit into their overall long term network plan. Even though this product can handle 90 Mbps over copper wire, they also need the Switches and Routers that will also handle this capacity for all their customers. I am just saying this to show that this one product has to fit into their over all network plan. All the pieces have to work together. It is just like your computer. If you have a very high speed modem in your PC but you service provider only has a 50,000 bps capacity, the highest speed connection you will get is 50,000 bps. The old saying that a chain is only as strong as it's weakest link applies to a network."
