bkeeper1 wrote:
Just thought you might like to know that an Internet company does not have to neglect their current customers in order to be profitable.
Bkeeper
Ground based ISP's are able to build, repair and expand their systems as demand grows. When they invest in a piece of equipment they can use it year after year. If a fiber-optic cable is layed to supply service to an area or as a backhaul to a cellular tower they will be able to utilize that investment for decades to come.
It was said the Echostart 17 had a price tag of about $500 million dollars. Many more $$$ were spent for launch and insurance costs. To that is added the costs of building and maintaining the 17 or so Gateways and 2 NOC's.
The issue is that despite very high costs, that satellite can not be repaired, it can not be expanded and it only has a service lifespan of about 15 years before it must be replaced. No building up upon previous investments here.
I haven't heard any numbers of Echostar 19 but I have read the that Exede's soon the launch ViaSat-2 had a cost of about $625 million dollars for the satellite and about $107 million more for insurance and launch services.
These satellites take years to build, launch providers can be another issue.
Trying to fold the new equipment into the Gateway network system can have some bumps in the road as we are seeing with the introduction of ES19.
I think that profitability line is much thinner than we think.