>"If you have spare backbone capacity, but are also in the very lucrative business of providing end-point / last mile connectivity, why would you lease your excess capacity and open yourself up to competition in the lucrative last mile segment?"
The actual fiber is a sunk cost. It's possibly you might get a better return on that asset by leasing unused capacity even if it introduces some element of competition.
The actual fiber is a sunk cost. It's possibly you might get a better return on that asset by leasing unused capacity even if it introduces some element of competition.