Telco Companies Promise Innovation in Exchange for Monopoly Concessions
Posted under Network Neutrality

It is true that the depreciation in telcos impact substantially on their return on equity. The telco infrastructures are expensive to maintain, specially when the investment was ill judged during the 2000 boom. Few ISPs are covering their depreciation with capital investment fully. An unfortunate fact for telco shareholders and directors.

Telcos would generate better profits by abolishing network neutrality, at the expense of profits for society as a whole. Large telco companies, specially encumbent former state companies, are not known for the wealth creation abilities. Small entrepreneurial companies have historically been the biggest source of GDP growth.

Giving further market concessions to a mature industry sector with a poor track record, at the expense of the small entrepreneurial company sector is short termism at its best

Quoting Susan Crawford blog it is a question of trust:

Why should we trust them now? We've already given them incentive after incentive, access to rights-of-way (presumably in exchange for common-carrier behavior, as Dan Berninger points out), and the regulatory shirts off our backs.

Helping telco companies make more profits is good for society as whole, or just the unlucky telco shareholders?

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