Comcast's $50 Billion Investment Claim is Misleading Bullshit Comcast this week attempted to kiss up to the government by announcing that the company would be "expanding" network investment to the tune of $50 billion over five years. Why? Comcast claims that the "expansion" in investment was only made possible by the government's extremely unpopular repeal of net neutrality rules, and its almost as unpopular tax "reform" plan, which primarily benefits the nation's biggest corporations by lowering their standard tax rate permanently (whereas the benefits for you, the little guy, will be temporary).

"Based on the passage of tax reform and the FCC's action on broadband, Brian L. Roberts, Chairman and CEO of Comcast NBCUniversal, announced that the Company would award special $1,000 bonuses to more than one hundred thousand eligible frontline and non-executive employees," Comcast said in a statement "Roberts also announced that the Company expects to spend well in excess of $50 billion over the next five years investing in infrastructure to radically improve and extend our broadband plant and capacity, and our television, film and theme park offerings," the company added. But those that take a closer look at Comcast's finances will find that's something that would have occurred anyway. "In Q3 2017, the most recent quarter, Comcast's capital expenditures were $2.4 billion," notes John Brodkin at Ars Technica. "Continuing to spend at that rate, even if Comcast doesn't increase spending to account for inflation, would push Comcast to $9.6 billion a year or $48 billion over the next five years." And based on current investment increases, Comcast would have already nudged that total past $50 billion regardless of the net neutrality repeal or the GOP's tax gift to American corporations, Brodkin notes. "If Comcast continues increasing capital expenditures by the same rate as it did with net neutrality rules in place, the company would easily break the $50 billion figure that Roberts attributed to the net neutrality repeal and tax break," Brodkin notes. This tactic of taking something they were going to do anyway -- then trying to claim that only awful, unpopular policies made it possible is a telecom industry tradition. AT&T has been utilizing this tactic for years, thanks in part to unskeptical consumers and a fact-check-phobic press. The same MO usually applies to mergers, where companies volunteer conditions they planned to do anyway, then claim it was all only possible thanks to "merger synergies." Comcast exemplified this tactic back in 2014 when top lobbyist David Cohen actually got the company to suspend a program that delivers cheaper broadband to the poor (again, which Comcast was going to do anyway because it costs them very little), because he wanted to use it as regulator bait to secure approval of the company's NBC Universal acquisition. And while $1,000 bonuses are nice and all (assuming they weren't planning to do those already too), they're a far cry from a raise, and obfuscate the fact that Comcast execs will be pocketing most of the windfall. Especially considering the billions upon billions that Comcast will likely glean from the gutting of net neutrality and the significantly lower tax rate. And while $1,000 bonuses are nice and all (assuming they weren't planning to do those already too), they're a far cry from a raise, and obfuscate the fact that Comcast execs will be pocketingof the windfall. Especially considering the billions upon billions that Comcast will likely glean from the gutting of net neutrality and the significantly lower tax rate.







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Most recommended from 31 comments



Ut98Ex

join:2012-07-11

Georgetown, TX 15 recommendations Ut98Ex Member And everyone will get a pony... with rainbows shooting out of their eyes. The only people that will believe this are the same fools that are still waiting to see his tax returns, locking her up, coal industry producing millions of jobs, etc, etc, etc.... Yawn. Wake me up when the lies and propaganda stop coming out their mouth.

Anon371f7

@2600:8800.x 3 recommendations Anon371f7 Anon Really? And how exactly am I going to get it back into the budget, smart ass? For me, it’s a large delivered pizza a paycheck. I can easily live without it for the sake of my country. en103

join:2011-05-02 3 recommendations en103 Member The problem list in 'assumption' You are 'assuming' that Comcast's single quarter of 2.4B in CAPEX will be sustained for 20 more quarters.

In general, I would tend to agree that Commiecast (as well as many other companies) tend to put a positive spin on things - especially that they like.

Once Comcast is pushing 1Gbps (2Gbps wasn't it?!) what else is there to invest in CAPEX on their network ? Wireless perhaps.

I've never been a big fan of Telco or CableCo - but in the era of cord cutting - this is still a good thing in general. Ostracus

join:2011-09-05

Henderson, KY 2 recommendations Ostracus Member Do as I do, not as I teach. quote: This tactic of taking something they were going to do anyway -- then trying to claim that only awful, unpopular policies made it possible is a telecom industry tradition. Can't imagine where they learned that from. Average Joe's are better, right? Can't imagine where they learned that from. Average Joe's are better, right? wkm001

join:2009-12-14 2 recommendations wkm001 Member Pai will also take credit for... When Verizon releases 5G nationwide Pai will take credit for adding an additional competitor to the national market. Mark my words!



Having an additional choice will be nice, but does it have to be Verizon? Oh wait, AT&T is going to have 5G too. Wonderful...