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PostPosted: Tue Feb 05, 2019 11:20 pm 
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Joined: Tue Jul 19, 2011 3:45 am
Posts: 10509
Charter Communications will keep their tax breaks, not invest in infrastructure, and raise prices

One of those unicorn dreams that the Republican Party and the Republican Party’s henchmen like FCC chair Ajit Pai, promised everyone, was that in getting rid of regulations and slashing taxes on the rich and corporations, would promote big time spending on the part of the wealthiest members in our society. That has been wrong in literally every way possible. Big telecoms like Verizon have already said that they are not going to invest more in their buildout of networks. If you aren’t named Mitch McConnell, you are not surprised. Ars Technica reports that Charter Communications is adding its name to the transparent money grab, announcing in a Jan. 31, earnings announcement that they would be spending about “$2 billion less on capital improvements to its Spectrum cable network.”

This is not exactly new news in that we reported in the fall that industry analysts saw slow downs in infrastructure investments across the board in the telecom industry, with predictions of even slower investment in the near future. This is exactly the opposite of what conservative economists promised, on their worthless degrees, would happen. ... ign=recent

PostPosted: Wed Feb 06, 2019 2:05 pm 
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Joined: Thu Jun 09, 2011 1:10 pm
Posts: 19377
Location: The blue parts of the map
The prices go up every few months as it is. They advertise that they don't have contracts like DirecTV, then they raise it any time they feel like it.

Of course they're not going to invest in physical plant that 5G might render useless in 10 years, but that's not the point. The point is that everyone except stupid American media consumers knew that the tax cut windfall would go for corporations buying back stock to increase their capitalization.

Now people are surprised to find out they won't be getting income tax money back this year, and in fact often owe thousands. Well gee, you think? Bird's Theorem time.

Human extinction is bad for business.

PostPosted: Wed Feb 06, 2019 5:27 pm 
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Joined: Mon Jun 06, 2011 10:27 pm
Posts: 9074
Location: miles from nowhere
Investing in infrastructure is only done when there is enough anticipated demand for product by manufacturing facilities. The critical measure is not taxes but margin. If demand drives the greed/fear psychological response to cause a decision-making process within management via demand forecast then plants will be built. A a current example the worldwide demand for isocyanates has been very high. Costs for raw materials to make polyurethanes and polyureas has gone up. Now, if existing capacity can handle the demand forecast load then there is no reason to build infrastructure but of course reason to simply screw the customer by raising prices. The difference between this and the communications people is that manufacturing has large scale costs. The telecomm segment may have costs for them but they also make decisions based upon geographic demand followed by cost-benefit analysis regarding maintenance which is always the first thing to get cut. Thus rural areas, low income areas are less served. Dense, high-income areas are perhaps even over served.

So, ultimately, yes, Bird's Theorem is shown in action again.

Thanks, Z.

bird's theorem-"we the people" are stupid.

"No one is so foolish as to choose war over peace. In peace sons bury their fathers, in war fathers bury their sons." - Herodotus

The new motto of the USA: Unum de multis. Out of one, many.

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