Returns for unbundling an Exchange

Discussion in 'Broadband' started by Richard Sobey, Feb 3, 2006.

  1. I've always thought that instead of a new LLU operator unbundling
    every London exchange, why don't they concentrate on other places? It
    seems that every LLU operator has equipment in every London exchange
    and are competing against each other. Why don't they expand a bit and
    target the areas where there is, as yet, NO LLU'ing, and therefore no
    competition?

    Just a question :)
     
    Richard Sobey, Feb 3, 2006
    #1
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  2. Richard Sobey

    Ian Stirling Guest

    Because presumably, there is a large per-exchange cost component.

    This means that you want to activate exchanges where there are a large
    number of people close to the exchange, rather than more spread out ones
    that may be as large (so that many people get higher speeds, and stick
    with you).

    Activating more rural exchanges so that you can put on lots of customers
    that may only get 512K may not be worthwhile.
     
    Ian Stirling, Feb 3, 2006
    #2
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  3. Richard Sobey

    Kraftee Guest

    For the same reason the cable co's cherry picked the areas which they
    thought would be more profitable ignoring others because they
    weren't..
     
    Kraftee, Feb 3, 2006
    #3
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