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I was under the impression (would be happy to be wrong) that the real problem was the last-mile of fiber, or DSL over copper and the dealing with the ILEC that involves. Basically the ILEC won't sell you DSL at a price that allows you to make any money. Am I correct about that?

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Getting good terms from an ILEC that you're directly competing with will be difficult. We advocate building your own last mile infrastructure where possible to get around that. Here in SF, we're using fixed wireless to do that.

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