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Friday, March 10, 2017

Open letter to US Wired and Sat TV providers. Innovate or perish.

You lost the Millennials already.  Gen X and the younger baby boomers like myself are next in line.

Dish network had no internet service. DirecTV was bought by ATT. Verizion FIOS is too small and too costly to expand. Dish network fired the fist salvo with Sling TV and ATT and now Youtube got it to complement Hulu and Netflix. Do not fight them. Join them. Perhaps you need to partner with cellular data service providers.

I have cable and internet and I pay $110 on the average for a 2yr contract. If my contract were to expire today, I would just get internet service even if it means I pay $65 instead of $45 and pay $50 to get Sling TV so called Orange plus Blue plus 4 extras and even a cloud DVR which is coming.

Embrace the new wave and dump your set top boxes completely. Use your ISP backbone using open standards to prioritize video. You know that all it takes is 2Mbps with the high efficiency codec to deliver 1080p and so 8MBps x 3 will support 3 4k TVs per house which is just 25% of my downstream bandwidth. Lot of room to expand into IOT, home security video etc. Your costs will come down because many users who are savvy enough to install their router can do it by themselves and you can contract out with the likes of GeekSquad at Bestbuy for the others. You will not need as many truck rolls. All the hardware other than wire to home is at your end. You can go after any customer in the world connected to Internet including mobile who wants your programming.

Saturday, March 4, 2017

Collect social security at 62 and invest vs wait till 67?

I did a simple calculation. Collect at age 62 and invest all of it. What is collected in year 1 is invested for 5yrs, year 2 collection is invested for 4yrs and so on and accumulates till age 67.

Compare it collecting 34% higher amount at age 67.

What I found is all you need is 2.75% return on money you collect at age 62 to match 34% more collected at age 67 and investing at the same return of 2.75%.

You may not get guaranteed return for 1yr investment unless it is 10yr treasury but if you have down payment money to buy real estate, current interest rate on mortgage is 4.75%. Even after tax deduction of 33% 3.2% is better than 2.75%.

What do you think?