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spokeshave

03/01/02 4:00 PM

#2517 RE: chromebuster #2515

chromebuster: In Japan, the populations is much more dense, and as such, the "last mile" probelm becomes more like the "last 100 yards" problem in some areas. That is much more tenable for fiber. By charging $45 extra per month, K-Opticon can make up the $25 per foot in a respectable amount of time if the distances are not too great. The article clearly states a "service area" that is no doubt quite limited.

FTTH will certainly work for some dense urban areas. It will never, however, solve the "last mile" problem unless the cost comes down by an order of magnitude.

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mahinui

03/01/02 4:09 PM

#2518 RE: chromebuster #2515

chromebuster, In the Palo Alto trial (began in 2000 I believe), there is a $1,200 installation fee ($4,600 new construction fee) with a 7-10 year return on investment (return time depends on 19%, 29%, or 38% buy-in by customers in the area). It is hard to imagine the Japanese using a business model that does not account for the huge expense of laying/running fiber (unless of course the company is betting on population density and a large percentage of users).