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comment by goobster
goobster  ·  2636 days ago  ·  link  ·    ·  parent  ·  post: Masking Technological Complexity in routing around Net Neutrality

Anti-trust. Good point. I hadn't considered that angle.

    The whole Net Neutrality thing is a staying action, not a victory and they know it and the longer they can keep the government from making them behave like a utility the more money they make.

So why spend more than a billion dollars on lobbying and astroturfing just to get Title II restrictions lifted?

The only way I can see for them to make money from that deregulation is by charging higher fees for higher priority traffic. And since they can charge both ends of the transaction - the consumer for the fast connection, and the web site for the fast connection - they stand to make back 100x that billion dollars they spent to get one niggling detail altered in the regulations.

I just don't see where you get a 100x payback on a billion dollar investment, otherwise... and if they aren't in it for the expanded pofits, why go through the colossal expense and effort to repeal Title II?





kleinbl00  ·  2636 days ago  ·  link  ·  

Comcast's operating income was $26 billion in 2016. Presume for the sake of argument that they paid all the lobbying. $1b represents 4% of their income.

Presume they bump their rates 10% for one year. Their ROI on lobbying is over 100%.

The broadband industry's revenue in 2016 was $140b. That's expected to drop $3b by 2020. A $1b lobbying push, if it so much as closes the gap left by catv subscription attrition, is more than a sound business decision, it's a no-brainer.