Net Neutrality continues to kill the growth of the wireless industry. Beginning in February of this year, wireless providers began telling us just how much net neutrality was already hurting them even though the rules weren’t even voted on yet. The wireless providers and their paid lobbyists warned us of what would happen if net neutrality was put in place: little investment, poor service, poor sales, etc….and we didn’t listen.
Fast forward to the last few months and the facts back them up. Just look at all of these issues recently:
- In the latest spectrum auction, the FCC broke all records by receiving close to $45 billion from telecom companies.
- AT&T reported in April that wireless sales had reached $32 billion.
- Verizon reported in July that their wireless (and FiOS) business continued to grow with 2Q15 revenues over $32 billion, a 2.4% increase over last year.
- T-Mobile’s last financial report had them showing double-digit revenue growth.
- Sprint continues to beat out Wall Street estimates with increased wireless subscribers.
Now? We have a real problem. In yet another showing of just how much the wireless providers are hurting, the wireless industry continues to see increased spending with TV advertisers. AT&T has now over-taken T-Mobile as the company who spent the most on wireless TV advertising in August.
In fact, as was reported several months ago, the overall wireless advertising business is expected to grow 2% to $23 billion in 2016.
When will we ever learn? Have you ever seen just how much broadband investment is suffering in 2015?