From an econ theory standpoint it's in a weird place: broadband is both rivalrous and excludable, so it's not a "public good" in the traditional sense, but it also relies on geographically-fixed infrastructure, so a private market for it cannot be efficient.
In the US, goods like this are usually provisioned through a metered semipublic utility. The problem is that to work, those need a monopoly.
The problem is that to work, those need a monopoly.
This isn't true and we can see it by the fact that lots of places have multiple wires run to them from ATT and multiple cable companies. Most of the time with cable a neighborhood is wired up but a cable isn't ran to a house until it is needed.
ISPs make so much profit they don't need everyone to sign up. A lot of times there is nothing to dig and it is run off a pole. They aren't giving a metered commodity like electricity, gas or water with their lines. Once a line is run to someone's house it's wildly profitable since the bandwidth per person is so cheap.
You should actually look at the books of these ISP's.
Then link something and show me specifically what you are talking about.
Loaded with debt and other liabilities and grocery store profits/net margins.
I'm not sure exactly what this is supposed to mean, but debt is how things are financed and comcast made a 3 billion dollar profit from 31 billion in revenue.
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
What 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.
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
In the US, goods like this are usually provisioned through a metered semipublic utility. The problem is that to work, those need a monopoly.