| Comcast's own Costs are Declining If you go and look at the guts of Comcast's 4Q 2009 SEC report and investor call, you'll see that their total cost for providing high speed Internet declined in 2009, and will decline further in 2010 -- despite their spending on DOCSIS 3 upgrades. Their costs of doing business are dropping like a rock, but they will raise the price of their lowest-tier broadband services, in a recession too.
This is clearly a market where Comcast has market power. If it were competitive, prices would decline as costs decline. |
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yabos
join:2003-02-16
London, ON | Yep. I used to work as a contractor for a Comcast owned company. 2009 they started cutting costs everywhere, firing lots of people they deemed un-necessary, dropping all joint venture contractors at the end of 2009 etc. They told a bunch of divisions in the company and sub companies that they all had to drop $500,000 from their budget no matter how they did it.
The finance department runs that company and the penny pinchers are only concerned about saving money.
When they came up with their 2009 (Q3 I think) profit of almost a billion dollars, lots of Comcast employees were obviously steamed since they don't see any of that profit.
The company I used to work for saved almost 2 million dollars in 2009, mostly by firing a bunch of people and cutting all the perks that made the company good. No Christmas party for 2009 even. You can imagine how people felt when some bozo from Comcast comes and brags how we saved this 2 million dollars as if we really cared. |
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Sammer
join:2005-12-22
Canonsburg, PA | reply to Bill Dollar
What do you mean their costs are declining. Things like an unnecessary acquisition of NBC Universal are raising their costs big time. Only shareholders may benefit from such things someday but consumers (not shareholders) get to pay for them. |
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