If it weren't for private investors, a lot of the profit could be instead deflected into upgrades, instead of swelling already wealthy coffers with more money in the form of dividends and stock options.
If a company in the black can't afford to upgrade services for customers, they are spending too much money on themselves. How else would they still be in business (ie, losing money all the time) unless someone is using it as a tax write-off?
There is no honest reason for any company not to want to compete with other companies, unless it's all about collusion and price fixing/gouging.
In theory, it's not unreasonable to give tax credits to cable companies who already provide broadband, that are competing with recipients of government cash.
Giving that money to cable co's means less to spend in places where it's needed, though.
