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Please cite your sources showing where they were profitable. Everything I've read shows that they were not profitable.
by shaklee3 8y ago
Please cite your sources showing where they were profitable. Everything I've read shows that they were not profitable.
- intended 8y agoAs I recall, American telecom firms have some of the highest revenue per user - this is the key metric that all telcos get compared on (apples to apples metric). American telcos have the highest ARPU in the world. If they are not profitable, then the rest of the world is positively broke - https://www.strategyand.pwc.com/media/file/An-industry-at-risk.pdf https://www.strategyand.pwc.com/media/file/An-industry-at-ri... This is the first OK free report I found. Someone in finance or with access will have a wealth of better reports.
- shaklee3 8y agoAmerican telecoms are not a comparison. Google had to pay for all the infrastructure to roll out the fiber, whereas others were susbsidized by the government.
- intended 8y agoTelcos are compared to each other, the same way car firms are - that’s the essence of a comp. Google fiber is, in the end, compared to the same companies because they had to make the same capex. The subsidy will be accounted for in the financial calculus.
- shaklee3 8y agoExactly. But Google had no subsidy as far as I know, so the margin to be profitable must be higher.