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by Nrsolis
5433 days ago
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My main point was to illustrate just how far we've come in absolute terms. My second point was to point out that there are real reasons why the assumptions made about what broadband "costs" aren't really relevant to what you "pay" for it. Without putting too fine a point on it, CAPEX on equipment/fiber tend to be dwarfed by the OPEX of leasing and labor costs associated with running a telecomm business for profit. Somewhat distended depreciation schedules mandated by GAAP compound the problem of removing obsolete assets from production networks and replacing them with newer equipment. BTW, pricing for "Internet" has been "metered" almost from the beginning of commercial availability. UUNET did 95th percentile pricing for almost all of its dedicated access customers because that was the best way to tie consumption patterns to bandwidth availability. If bandwidth seems expensive now, it's only because you've been paying for it for a very, very short time. |
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So does the extended depreciation force equipment owners to pay the taxes they would've written off for the extra years if they just disconnect the equipment and let it sit in a closet?