To reduce operational costs and improve network reliability, a telecommunications provider plans to replace all existing copper wire infrastructure in rural districts with fiber-optic cables over the next two years. Corporate executives argue that this upgrade will significantly boost net operating profits from rural service within three years, noting that fiber-optic infrastructure requires 70 percent less routine maintenance than copper and supports higher bandwidth subscriptions. Consequently, the executives conclude that the initial capital expenditure will be quickly offset by reduced maintenance expenses and increased subscription revenues.
Which of the following statements, if true, most seriously weakens the corporate executives' argument?
- ASubscribers in urban districts who upgraded from copper to fiber-optic cables reported a 90 percent reduction in service interruptions over a three-year period.
- BThe telecommunications provider faces stiffer competition from satellite internet providers in suburban markets than it does in rural districts.
- In sparse rural districts, the primary cause of line outages is severe weather that damages above-ground utility poles, making physical repairs to fiber-optic cables five times more expensive per mile than repairs to copper lines.Answer
- DMany rural subscribers currently use mobile cellular data plans as their primary connection to the internet rather than landline broadband service.
- EThe initial installation cost of fiber-optic cable per subscriber in densely populated urban areas has declined dramatically over the past decade.