Re:Appeals court upholds FCC's net neutrality order
by chrishacken on Tuesday June 14, 2016 @02:19PM
(#11904081)
Yes, it's extremely profitable after X years (after the infrastructure is all paid off), but lowering those profit margins would only make it more difficult for new players to enter the market. If profit margins weren't high, it would essentially be impossible to recoup that initial capital expenditure.
Aside from that, if you're anything like us, you will be reinvesting those profits into expanding and growing your network.
Re:Appeals court upholds FCC's net neutrality order
by st3v3r on Tuesday June 14, 2016 @04:05PM
(#11904920)
Time Warner has those levels of profit margin because they largely have no competition, so they can charge as much as they can squeeze from people. Cover their territory with 3 other, competitive ISPs, and watch that margin number drop.
Re:Appeals court upholds FCC's net neutrality order
by forrestthewoods on Tuesday June 14, 2016 @05:15PM
(#11905368)
That's literally the point I've been making in this sub-thread...
When profit margins are that high capital finds a way. What capital can't do is chop through red tape, burdensome regulation, and noncompetitive system.
Your investors aren't crazy. You challenge titans! But your difficulty isn't going to be technical. It's going to be those titans doing everything in their (significant) power to stop competition. They want to protect their 97% margin after all!