Slashdot Mirror
Comcast Lowered Cable Investment Despite Net Neutrality Repeal (arstechnica.com)
An anonymous reader quotes a report from Ars Technica: Comcast's cable division spent 3 percent less on capital expenditures last year, despite promises that the repeal of net neutrality rules would boost broadband network investment. Comcast's cable division spent $7.95 billion on capital expenditures during calendar year 2017, but that fell to $7.72 billion in the 12 months ending on December 31, 2018. Comcast's overall capital expenditures went up 2.3 percent, from $9.6 billion in 2017 to $9.8 billion in 2018. But that company-wide capital expenditure number includes the Comcast-owned NBCUniversal, which spent $1.7 billion in 2018, a 15.2 percent increase, "primarily reflecting investment at Theme Parks," Comcast said.
The cable capital expenditure statistic thus provides a more accurate picture of whether Comcast increased or decreased investment in its broadband network. Cable capital expenditures as a percentage of Comcast's cable revenue dropped from 15 percent in 2017 to 14 percent in 2018. Comcast's network spending should have risen in 2018 if predictions from Federal Communications Commission Chairman Ajit Pai and Comcast had been correct. Pai's net neutrality repeal took effect in June 2018. But the vote to repeal net neutrality rules was in December 2017, and Pai claimed in February 2018 that the repeal was already causing increased broadband investment. While Comcast's cable capital expenditures did rise year over year in the fourth quarter, from $2.15 billion to $2.32 billion, it wasn't enough to offset the full-year decline. Ars Technology also notes: "The corporate tax cut implemented as 2018 began also didn't stop job cuts at Comcast and AT&T, despite promises that the tax cut would create new jobs."
The cable capital expenditure statistic thus provides a more accurate picture of whether Comcast increased or decreased investment in its broadband network. Cable capital expenditures as a percentage of Comcast's cable revenue dropped from 15 percent in 2017 to 14 percent in 2018. Comcast's network spending should have risen in 2018 if predictions from Federal Communications Commission Chairman Ajit Pai and Comcast had been correct. Pai's net neutrality repeal took effect in June 2018. But the vote to repeal net neutrality rules was in December 2017, and Pai claimed in February 2018 that the repeal was already causing increased broadband investment. While Comcast's cable capital expenditures did rise year over year in the fourth quarter, from $2.15 billion to $2.32 billion, it wasn't enough to offset the full-year decline. Ars Technology also notes: "The corporate tax cut implemented as 2018 began also didn't stop job cuts at Comcast and AT&T, despite promises that the tax cut would create new jobs."
"The corporate tax cut implemented as 2018 began also didn't stop job cuts at Comcast and AT&T, despite promises that the tax cut would create new jobs."
Are there still idiots around that believe corporations hire people because they have more cash on hand?
If X is promised in return for Y, then if You is delivered and X isn't, correlation under other circumstances is irrelevant. The fact is, Comcast lied.
Like we all knew they would.
They will suffer no penalties, only customers do that, and it'll get justified by their fanboys.
It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
Subtitled "I've just shat myself in surprise!"
"Oh my God. This is terrible. This is the end of my Presidency. I'm fucked."; ~ Donald J. Trump
Agreed. Problem is all the anti-net neutrality people kept saying we had to get rid of it because it stifles investment, and as soon as its gone we'll enter a golden age where everyone has the most super internet access ever.
As with most promises that everything will be fantastic if we just let giant corporations do whatever they like, none of the promised benefits ever appear.