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Now go and sum up the gross profits of AT&T, Verizon and Comcast and let us know what they are doing with it.
by hos234 7y ago
Now go and sum up the gross profits of AT&T, Verizon and Comcast and let us know what they are doing with it.
- rayiner 7y agoWhy would you sum it up instead of looking at percentages?[1] AT&T’s profit margin is under 10%. For wireline, Verizon’s is under 5%. Eliminating the profits isn’t going to change [1] I know why Sanders does it, because he is catering to people who are outraged at the thought of “billions in profit” even if that only represents a single-digit percent of revenue. Indeed, if you go read Sanders’ proposal, he makes a point of stating how AT&T’s CEO made $33 million, as if that isn’t a drop in the bucket for a company that spends $140 billion a year on opex.
- hos234 7y agoI would because they are spending barely 40 of that on telco. Most of it is being spent on their content play to capture "premium" customers i.e. not the 163 million Microsoft claims don't have basic broadband speed internet access. Might as well just divide the country and be done with it, if you are quite happy with the direction Big Telco will take us.
- rayiner 7y agoOpEx in the Warner media unit is just 4 billion of that total.
- hos234 7y agoYup looks like I jumped the gun there. I was looking at mobility group opex - 41 billion (150 million subscribers). Assumed rest was content (hbo/warner/turner etc). They have a header called "entertainment group" opex - 36 which I assumed was content. Digging deeper "entertainment group" was actually cable and satellite.
- aSplash0fDerp 7y agoIt takes an obese person more calories to take 10 steps than an average weight individual. Profit margins (or numbers used to get Gov funding) are just a big, fat lie. We do need healthier Internet, but do you really expect bad math or morbidly obese institutions to be the answer?