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I think what GP is also saying is the money maker divisions subsidize the 'loser' regional divisions. It would be interesting to see that data...
by ksk 8y ago
I think what GP is also saying is the money maker divisions subsidize the 'loser' regional divisions. It would be interesting to see that data...
- peterwwillis 8y agoAbsolutely. Modern ISPs are part of corporations which have other business interests that are very, very expensive. All corporations use all of their money-making ventures to help subsidize other parts of the business. Just look at the old Bell system. They charged exorbitant rates for the long distance service and used this to subsidize local service. When Bell got broken up, local phone service got more expensive, but long distance got cheaper. Later on, a lot of the baby bells got absorbed by others because they were not efficient enough to generate profits as individual units without the "mothership" subsidizing them. The way a giant corporate monolith works is completely different from a tiny local company.
- creeble 8y agoThen they should kill the business units that are expensive to run, not jack up prices on the profitable services.