Today, net neutrality is being argued in court. The FCC will claim that they have the authority to define ISP’s are common carriers under Title II’s definition of “telecommunications services.” ISP’s, on the other hand, will argue that the FCC has no such power.
For months, ISP’s have spent many millions trying to convince the public and government that net neutrality would destroy the broadband business. ISP’s have told us that if net neutrality was put into law, super secret new taxes would jump onto consumers bills, network investment would suddenly fall off a cliff and their financial bottom lines would suffer significantly.
Almost a year after net neutrality was successful put in place by the FCC, we have seen no secret taxes and network investment continues to break new ground with record amounts of money being spent during spectrum auctions and/or mergers.
To be fair, I am guessing that the ISP’s are seeing drastic decreases in profits and revenues.
Let’s ask Cable One CEO Thomas Might how his business is doing after net neutrality was introduced:
Speaking at the Wells Fargo Securities Technology, Media & Telecom conference in New York, Might said that operating cash flow margins for “product B” (high-speed Internet) are in the 50 percent range. “It’s new math,” Might said. – FierceCable
But frankly, even those absurd financial numbers are not enough. Cable One has recently announced ANOTHER price increase for broadband customers, this time charging consumers $5 per month for simply using the internet.
Maybe we are simply focusing on one company. Let’s see how the broadband business services are dealing with net neutrality.
Revenue from MSO business services divisions is set to finish 2015 up 20 percent year-over-year to $12 billion, according to report from Zacks Equity Research. Comcast remains the biggest operator in the commercial services sector, and is on track to yield $4.7 billion in business services revenue this year, up 20 percent over 2014. Time Warner Cable (NYSE: TWC) is second in commercial services market share. Its business service revenue is projected to finish up nearly 36 percent to $3.3 billion. – FierceCable
Let’s see how the wireless big boys are doing during these terrible financial times.
In 2015 so far, Verizon and AT&T have earned roughly $17/subscription/month….AT&T posted a record wireless EBITDA service margin of 49.4 percent in the third quarter, up from 43.1 percent a year ago and 48.5 percent in the second quarter. Verizon’s was even higher. Verizon’s wireless segment EBITDA margin on service revenues was 56.4 percent in the third quarter, compared with 49.5 percent in the year-ago period. – Chetan Sharma, Industry Analyst (per FierceWireless)
AT&T is also rumored to have more than $10 billion ready to go during the next spectrum auction.
Honestly, can someone explain to me how these companies are able to work under such atrocious conditions?