> If the wireless last mile option costs $500/household then you'll get destroyed by a competitor who can come in and offer the same or better service at substantially lower cost.
That's not even necessarily true. The $2000-$5000 is a one time cost, and then that piece of fiber could last for 50 years. Having to amortize $40-$100/year against a service that costs around that much a month isn't fatal. Meanwhile they're offering service for whatever maximum speed so you set your price for that $1 below theirs and then charge $10-$20/month more for double that speed which they can't offer at all. Half the customers take you up on the higher speeds and you make back your costs, the other half take the $1/month discount and your competitor is the one who gets destroyed.
That's not even necessarily true. The $2000-$5000 is a one time cost, and then that piece of fiber could last for 50 years. Having to amortize $40-$100/year against a service that costs around that much a month isn't fatal. Meanwhile they're offering service for whatever maximum speed so you set your price for that $1 below theirs and then charge $10-$20/month more for double that speed which they can't offer at all. Half the customers take you up on the higher speeds and you make back your costs, the other half take the $1/month discount and your competitor is the one who gets destroyed.