Fiber
optic cable has a lot in common with railroads.
- They are both very expensive to install.
- Both are sunk costs (once installed, the capital costs cannot be
recovered except through sales.)
- Both are expensive to access. For a railroad, you need to build a
siding. For fiber, you need to splice into the cable.
- Switching is expensive.
Railroads were replaced, for all those reasons, by the personal
automobile. What will fiber be replaced by?
posted at: 13:20 |
path: /economics |
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