Replies to post #2555 on Rim Semiconductor Company (fka RSMI)

[spokeshave]

austin01: Re: how long is the window of opportunity for the NVEI tech before FTTH possibly becomes the standard?

I doubt FTTH will become the standard. It is just too expensive. Fiber manufacturing is mature and we are not likely to see an evolutionary manufacturing process that makes it significantly cheaper to produce. Additionally, fiber is generally placed underground and cable-laying costs are unlikely to change dramatically anytime soon. The real question about FTTH will be if the consumer is willing to pay a premium. A trial project in Palo Alto had costs of $4600 per home. The consumer paid a $1200 installation fee and a monthly fee of $60. Total cost recovery was estimated at 7 to 10 years. That is a long time to profitability. Bear in mind, this was done in a community that already had a well developed fiber loop in place, so that cost was not figured in. Few communities have this in place already.

In short, I doubt the window of opportunity will close anytime soon.

Could the NVEI tech still remain a prominent revenue-bearing product even if FTTH thrives?

Absolutely. There is room in the industry for both. NVEI's technology will likley be the best value for most people and small businesses. Communities that already have a developed fiber loop amy be able to offer fiber, but the costs will be high. I would imagine that the NVEI costs would be small to the consumer.