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."
Far more difficult, accurate, convenient, and nuanced than hyperbole
> An ISP that stops investing, is an ISP that stagnate and risk losing their place in the market when another ISP shows up and has better stuff to offer.
Which literally cannot happen in many parts of the country because ISPs have an effective monopoly. They don't invest because they don't have to... the next option is probably DSL or Satellite and both of those options are garbage even compared to modest Cable/Fiber. Result? Extortion prices for Cable/Fiber that's still sub-par compared to elsewhere.
Now you've lost NN which means they can now legally combat competition for digital services, which otherwise aren't burdened with the high cost of infrastructure roll-out. They can charge you extortion prices for shit service AND their would-be digital service competitors extortion prices for access to you as a customer. It's lose-lose!
=Smidge=
Verizon's lawyer currently also chairman of the FCC isn't an idiot. Just a very skilled player. He'll have received millions under the table for this.
This won't shock him, this won't shock any of the Republicans on the FCC's board paid to vote with him.
Why should it shock anyone that Comcast, taken to court for cutting the cables of rivals, sees no reason to invest when they've secured a monopoly in many places through protection rackets and other Mafia-like conduct?
The Feds won't press them, Comcast pwned Trump and the Senate. Control them and you control just about everyone. At least, everyone still working.
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)