Sure to be flamed, but, Comcast makes a total margin of just 8.3% and has a SG&A as a % of Sales of 25%. That means, after everything is paid, they have only made 8% and that operations costs them 25% of their total revenue and they are paying 38% in state, local and federal taxes according to Forbes.com.
Note that Charter even filed for bankruptcy. If they are money grubbing, where is the money going?
This is like saying the grocery stores are money grubbing because your favorite candy bar went up $0.50 even though as a total return for all grocery stores as an industry is 2% on avg. Also, Forbes.com
In order for the ISP or Telcos to make money, they need to add subscribers, that I agree per the article, I believe the issue is they are not getting enough subscribers to keep up with costs. They are looking for every avenue to make more money. A business at the end of the day has a responsibility to its stock holders and employes both of which expect them to make more money in some way.
Call them money grubbing if you like, but maybe there is more to the story than what is being presented.
I don't like what they are trying to do, and its probably that their revenue model does not work, but one way or another just like your utility bill, prices WILL go up.
I also predict that as more people go to smart phones, we will see more stupid stuff like this in wireless as well. It may come to a point where it is like your electirc bill or water bill and you get charged for what you use.
I am not a telco expert but I don't want to argue that all companies are bad and what is missing is the cost of operations. If they are really that bad, something needs to change. If they are really and truely only after profits, then they can go jump in a lake. I just do not believe it is as black and white as many of the comments.
