Get your Reality Distortion Fields ready: the Salt Lake Tribune reports that Qwest is planning on building fiber. Despite the catchy headline, it looks like this plan is a lot of smoke and no fire. Qwest plans to build a FTTN network capable of 20Mbps by the end of the year at a cost of $300M. Compare that to UTOPIA who can do 50Mbps right now at a cost 10% cheaper per household served.
This raises some great questions, chiefly how it is that UTOPIA can build a better network at a lower cost than one of the country's largest telecommunications companies. Qwest's cost per served household is somewhere in the range of $1500 while UTOPIA is doing it for $1350. When you figure out the cost per megabit per household, Qwest is spending nearly triple what UTOPIA is. If Qwest stockholders are expecting a decent return on investment, I've got some great investment opportunities in subprime mortgages for them. This is further proof that Qwest just doesn't get it.