bad proposal then.

In reply to a post by Chrysalis:

no wonder there is such a scare to invest here, if people arent patient and realistic enough.

in various markets a 13% hit rate would be brilliant, not sure why broadband is seen as a failure with 13%. How many years since they stopped rolling out, so how many years of high coverage?

Given Virgin Media have over 40% take up rate 13% seems rather low.

It should be noted that a big cause for it being seen as a failure is that the costs of building the network are split between active subscribers. How much it costs to pass each home isn't the issue it's how much it costs per subscribed home that's the key. Splitting the costs between 13% of passed premises is pushing the time for a return quite a way out there, potentially to the point where the network won't make a profit before it needs renewing.

bad proposal then.

that's where I was too, however with less than that it just doesn't work - so no investment.

how many years should this target be obtained by?

40% takeup on what tho? you mean on all services together. thats a different thing somewhat.

I am sure they not expecting anything near 40% on their 100mbit services.

In reply to a post by Chrysalis:

40% takeup on what tho? you mean on all services together. thats a different thing somewhat.

I am sure they not expecting anything near 40% on their 100mbit services.

I mean 40% takeup, I wasn't talking about services in any way. Anyone taking a service is paying for some of the network costs.

It's not a different thing somewhat or in any way. The 13% figure is take up of any FTTH service so the most appropriate comparison and the only relevant figure.

the thing I was reading set out for a 5 year rollout over an area but with very high takeup assumed it could fund it in 3 years.

they wanted a 3 year payback? seems doomed to failure before it starts.

its different because VM in one form or another have been selling broadband for more than a decade, this 40% includes people who are kept as customers via nice retention deals etc.

quite different to a new starter company coming in and then expecting high figures within 3-5 years.

nobody mentioned a three year payback. The cashflow would allow rollout in three years with high takeup but would need more time with lower takeup (less revenue to spend).