There’s an interesting article in The Globe & Mail today that talks about the rollout of Gigabit Internet in Canada and the costs and challenges associated with that rollout for Bell and Rogers. Here’s a snippet of what I am talking about:
“Rogers has completed its upgrade to the next generation of cable technology (known as DOCSIS 3.1) and said Thursday that between itself and BCE, the city of Toronto is now covered by gigabit Internet services.”
“It costs cable companies such as Rogers and Videotron Ltd., which is BCE’s biggest competitor in Quebec, about $250 to $300 a home to upgrade their networks and provide gigabit speeds, according to an estimate by Desjardins Securities Inc. analyst Maher Yaghi. In contrast, he estimates it costs BCE from $1,000 to $1,500 a home to make its fibre-to-the-home upgrades.
However, in both Toronto and Montreal, BCE is making use of aerial options – such as hydro poles – to string its cables, which is cheaper than building underground. Barclay’s Capital analyst Phillip Huang estimates it costs about $400 to $700 to connect homes using aerial infrastructure. He said that while 60 per cent of the build in Toronto had to be done through buried infrastructure, it will only be about 10 per cent in Montreal.”
This explains to some degree why Rogers and Bell have been engaged in battle to grab as many users as possible. They have to recoup the costs of this rollout somehow. I suspect that this will escalate over the next few months. That means that users will win because prices for Gigabit Internet will drop because of the competition between the two. If you’re in the market for Gigabit Internet, see if both Bell and Rogers can service your area with that service. If they can, I can say from personal experience that you’ll have leverage over both to get the best deal that you can. Especially if you bundle your services.
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This entry was posted on March 31, 2017 at 9:07 am and is filed under Commentary with tags Bell, Rogers. You can follow any responses to this entry through the RSS 2.0 feed.
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Globe & Mail Discusses Bell & Rogers Rollouts Of Gigabit Internet
There’s an interesting article in The Globe & Mail today that talks about the rollout of Gigabit Internet in Canada and the costs and challenges associated with that rollout for Bell and Rogers. Here’s a snippet of what I am talking about:
“Rogers has completed its upgrade to the next generation of cable technology (known as DOCSIS 3.1) and said Thursday that between itself and BCE, the city of Toronto is now covered by gigabit Internet services.”
“It costs cable companies such as Rogers and Videotron Ltd., which is BCE’s biggest competitor in Quebec, about $250 to $300 a home to upgrade their networks and provide gigabit speeds, according to an estimate by Desjardins Securities Inc. analyst Maher Yaghi. In contrast, he estimates it costs BCE from $1,000 to $1,500 a home to make its fibre-to-the-home upgrades.
However, in both Toronto and Montreal, BCE is making use of aerial options – such as hydro poles – to string its cables, which is cheaper than building underground. Barclay’s Capital analyst Phillip Huang estimates it costs about $400 to $700 to connect homes using aerial infrastructure. He said that while 60 per cent of the build in Toronto had to be done through buried infrastructure, it will only be about 10 per cent in Montreal.”
This explains to some degree why Rogers and Bell have been engaged in battle to grab as many users as possible. They have to recoup the costs of this rollout somehow. I suspect that this will escalate over the next few months. That means that users will win because prices for Gigabit Internet will drop because of the competition between the two. If you’re in the market for Gigabit Internet, see if both Bell and Rogers can service your area with that service. If they can, I can say from personal experience that you’ll have leverage over both to get the best deal that you can. Especially if you bundle your services.
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This entry was posted on March 31, 2017 at 9:07 am and is filed under Commentary with tags Bell, Rogers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.