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What's the debt though? AT&T has more debt than share value. That profit is 10% What's the spread between that and the loan repayment rate? What's the Fed rate
by inemesitaffia 3y ago
What's the debt though? AT&T has more debt than share value.
That profit is 10% What's the spread between that and the loan repayment rate? What's the Fed rate?
People invest in different things but they should be getting value at least equivalent buying Fed bonds.
- CyberDildonics 3y agoWhat's the debt though? AT&T has more debt than share value. You tell me, you're the one who made the claims. That profit is 10% What's the spread between that and the loan repayment rate? What's the Fed rate? Profit is after servicing loans. the loan repayment rate? What loan? What are you talking about? What's the Fed rate? People invest in different things but they should be getting value at least equivalent buying Fed bonds. It's 5.25%, that took me 4 seconds to google. Did you think it might have been 10%?
- inemesitaffia 3y agoComcast has 94 billion in debt At&T is 155 billion in debt That Fed rate spread definitely puts those companies in grocery store rates It's not a good business to be in unless you're a big investor depending on consistent earnings They aren't "making it big" Unless there's collusion, multiple providers means minor amounts of profit. Bandwidth is ridiculously cheap these days once you're big enough. The costs are in laying Fiber, power, repair and support. And definitely debt servicing. Let's say there's a new residential block with 12 homes one mile away from another place with service from your network core If the ground is alright or there's poles, you deliver at 15 to 20k/mile to the demarc at the building. Spend 5k for a stub or 20k for a regular connection that allows for extensions like the one you just made. Then spend 750/home for connections+CPE. Maybe extra money for IP addresses if you don't do CGNAT. If you bill 50 a month and have no issues there you spend 7 years recovering your money before you make any profits. When you see this you'll know why Verizon removed it's CEO after he laid lots of fiber. These numbers are assuming there's full take-up. A single truck roll can wipe off two months of earnings from a user There's better shares to buy. Better businesses to invest in
- CyberDildonics 3y agoWhat point are you even trying to make? Do you know or have you lost the plot? Above someone was trying to say municipal ISPs don't make money. They clearly can, ISPs make plenty of profit and municipal internet has been done many times before. Not only that their speeds are often higher than competing ISPs in the area. Comcast has a 148.43 billion market cap, which includes their debt. They made over 3 billion in profit which includes servicing their debt. That Fed rate spread definitely puts those companies in grocery store rates What are you even talking about, this doesn't mean anything. They aren't "making it big" Comcast is a fortune 100 company worth 150 billion dollars. Municipal ISPs just need to work. Again municipal internet already works all over the place. Chattanooga offers 300 mb internet for $58 USD. They offer 10 gigabit for $300. Unless there's collusion, multiple providers means minor amounts of profit. Prove it. The whole point was that municipal internet works because it can make its money back over time. You making up random hypothetical scenarios has nothing to do with that. Better businesses to invest in Except that a municipal internet service can break the ISP monopoly, offer much higher speeds, lower prices and do it all while earning its money back.
- inemesitaffia 3y ago150 billion in the cap isn't free cash flow. The Fed rate spread is the difference between investing in a company and giving it to the Feds. I'm sure you've heard of "the end of easy money" and articles about if your world view was created by ZIRP. Of course another important rate is that between your profits and the inflation rate. i.e are you actually making money or running on a treadmill Have you heard of Google, Apple, Microsoft, or Exxon, Facebook, Nvidia? And that profit is almost nothing although the ratio is 1% into okay Municipal broadband is a good thing. It keeps the money home. It can be successful. It's the sort of thing that's fine with very long term loans and the associated horizons In fact most of Comcasts issues are TV related Municipal broadband=okay Overbuilding = very terrible idea for anyone trying to make money. It's like trying to turn a profit in Ashburn selling carrier services where Transit is cheaper than peering
- CyberDildonics 3y ago