It does make sense for very rural customers. For my parents to get fiber like you suggest, someone would have to string up about 10 miles of fiber to gain like 50 customers, maybe. With another 90 miles of fiber they can get all the way to 1000 people served; idk how many households that is but the unit economics don’t make sense.
Rural, cellular dead zones (eg desert, mountain passes), air, ocean/seas/large lakes.
To cover rural reliably though you end up having to be over dense areas as well, but they cant really compete in the dense areas as they’ll be cheaper options, but you can make some money there since you already cover it. The area they could best compete there would be critical backup service.
I mean if we’re looking at pure economics, it’s probably not even worth running power lines to your parents. Matter of fact, they probably wouldn’t even have electricity if the government didn’t force electrical companies to build power lines to everyone, with the electrification act of 1968.
It isnt worth it, but at least in Canada and USA we’ve given the ISPs billions of dollars to service them, and they keep adding a token amount of people and saying shucks all the money is gone we couldn’t do what we said, and then we give them more. Rinse and repeat.
Fiber wouldn’t be a one-time charge though. There’s regular ongoing maintenance needed for a fiber network.
There’s an old joke in the telecom world:
Q: If you were going to be stranded on a desert island and you could only take one thing with you, what would you take?
A: I would take a small bundle of fiber optic cable. As soon as I was on the island, I’d make a small hole in the sand and bury it. As soon as I turn my back there would be someone with a backhoe there to dig it up.
The cost of sending crew out to fix a 10 mile fiber run servicing a single household would wipe out any possible profit from that subscriber for more than 100 years. Now multiple that by how many 10 mile+ fiber runs we’d need to service all those widespread low-density rural customers.
Those satellites are all earning profit everywhere else around the world they can service. That line to a 100 person community taking decades to be profitable is money the ISPs dont want to spend because it’ll take decades.
It does make sense for very rural customers. For my parents to get fiber like you suggest, someone would have to string up about 10 miles of fiber to gain like 50 customers, maybe. With another 90 miles of fiber they can get all the way to 1000 people served; idk how many households that is but the unit economics don’t make sense.
Rural, cellular dead zones (eg desert, mountain passes), air, ocean/seas/large lakes.
To cover rural reliably though you end up having to be over dense areas as well, but they cant really compete in the dense areas as they’ll be cheaper options, but you can make some money there since you already cover it. The area they could best compete there would be critical backup service.
I mean if we’re looking at pure economics, it’s probably not even worth running power lines to your parents. Matter of fact, they probably wouldn’t even have electricity if the government didn’t force electrical companies to build power lines to everyone, with the electrification act of 1968.
It isnt worth it, but at least in Canada and USA we’ve given the ISPs billions of dollars to service them, and they keep adding a token amount of people and saying shucks all the money is gone we couldn’t do what we said, and then we give them more. Rinse and repeat.
Give it 50 years of replacing satellites and I am willing to bet a one time install of fiber would have been cheaper.
Fiber wouldn’t be a one-time charge though. There’s regular ongoing maintenance needed for a fiber network.
There’s an old joke in the telecom world:
Q: If you were going to be stranded on a desert island and you could only take one thing with you, what would you take?
A: I would take a small bundle of fiber optic cable. As soon as I was on the island, I’d make a small hole in the sand and bury it. As soon as I turn my back there would be someone with a backhoe there to dig it up.
The cost of sending crew out to fix a 10 mile fiber run servicing a single household would wipe out any possible profit from that subscriber for more than 100 years. Now multiple that by how many 10 mile+ fiber runs we’d need to service all those widespread low-density rural customers.
Those satellites are all earning profit everywhere else around the world they can service. That line to a 100 person community taking decades to be profitable is money the ISPs dont want to spend because it’ll take decades.