| Maximize Long-Term Profits Comcast and all cable companies will set prices to maximize long-term (over 3-5 years) profits. This is why I believe that regulation of cable systems, telephone service, water, electrice and gas utilities is the way to go.
(Remember almost the entire country had cable service when it was regulated)
Under regulation a company is allowed to recoved its capital costs over time, its operating costs currently and a reasonable profit. These were the terms the cable companies agreed to operate under when they set up the original services.
Un-regulated a company is allowed to price its product any way it desires.
I vote for regulation and so did virutally every state and locality, congress destroyed the regulated business model and we will never get it back. I figure I am paying about 30% more, in cable fees due to congresses stupidity. |
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dynodbPremium,VIP
join:2004-04-21
Minneapolis, MN | I vote for you having the most ironic user name ever.
You might have a point with regard to electric and other such utilities which are already regulated at the state level, but cable TV? For what other industries should the government impose their interpretation of a "reasonable profit"?
"Free Enterprise" indeed  |
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