Comment by jrajav
3 years ago
Costs of deployment and profit margins have nothing to do with it. The US public has subsidized the cost of broadband internet deployment since the very birth of the internet, and continues to do so like clockwork every few years. Private ISPs continue to caress the books to make it seem like they're barely operating at a profit and still need more, without ever having delivered on the last promise. Taxpayers have paid for fiber to every home a few times over at this point.
The thing I can't really understand if this is the argument is where the money is actually going? With an on paper 11% profit margin it's certainly isn't shareholders, and even if the executives rake it would still be a blip in their total revenue.
It is precisely shareholders and executives. 11% profit margin but huge share buybacks, bonuses and acquisitions.
Share buybacks and acquisitions come from post profit money, not pre profit, so they won't impact the margin. They're not a line item in operating expenses.
Bonuses and other remuneration will, but no executives are getting $5 billion annual bonuses there and ~$million bonuses won't move the needle.