Category: Billion

Economists Predict Net Neutrality Cost 700K Jobs and $35 Billion Annually 0

Economists Predict Net Neutrality Cost 700K Jobs and $35 Billion Annually

Obama-era net neutrality rules the Federal Communications Commission could repeal 1 may have cost the U.S. economy 700,000 jobs and $35 billion annually in broadband investment, according to economists at Stanford, Pepperdine, New York University, and elsewhere. The economists on Thursday discussed three separate studies commissioned by the broadband industry examining the FCC’s decision to reclassify broadband service as a public utility, subject to potentially tougher regulation.

Reclassification under Title II of the Communications Act, originally designed to regulate telephone monopolies in the 1930s, has cost the industry tens of billions in investment toward network expansion and hundreds of thousands of jobs since enacted in 2015, according to one study. “Estimates of $35 billion per year in lost investment and, cumulatively, lost jobs nationwide that may have reached 700,000 since the FCC’s reclassification of BIAS Broadband Internet Access Service providers are reasonable,” Christian Dippon of NERA Economic Consulting wrote. The FCC turned to Title II as a way to bring internet service providers (ISPs) under its jurisdiction after previously trying to enforce open internet rules against web traffic blocking, throttling, and paid prioritization that were struck down in court. Though the FCC forbore from many heavy handed Title II regulations like price capping in the 2015 Open Internet order, Dippon — in a study paid for by Comcast — said the FCC can “reverse itself” any time, and that threat is making investors wary. “There will be lower levels of investment and, relatedly, lower levels of innovation, which will lead to lower levels of Internet subscriptions, yielding lower levels of employment at the macroeconomic level,” he predicts.

Dippon arrived at his numbers via an approach used in a previous Title II economic study by Phoenix Center economist George Ford. Ford’s study 2 , cited in Dippon’s, estimates what jobs and investment would have looked like if the FCC never implemented Title II. Dippon further estimates and factors in how many potential new broadband customers could’ve been lost. “The Ford study predicts shortfalls in investment of roughly $35 billion per year,” Dippon says. “A paper by Sosa and Audenrode, using the Bureau of Economic Analysis RIMS II data and other industry data, estimated that each additional dollar of capital spending generated 20.4 jobs for every million dollars invested in capital equipment.” “Consequently, the shortfall of $35 billion per year translates to 714,000 jobs,” including in sectors like construction and others outside the telecom industry, the study estimates.

Separately, in an FCC filing earlier this week 3 , small manufacturers of broadband network products argued Title II was a threat to their businesses. Another study by Stanford economics professor Bruce Owen, paid for by the cable trade group NCTA, cited Ford and another study by Georgetown economics professor Hal Singer. According to Singer 4 , capital expenditures by the twelve largest internet service providers in the U.S.

have fallen by $3.6 billion, a 5.6 percent decline compared to 2014 levels. “Even setting aside the debate over how best to interpret investment data over the past two years, economic literature is replete with empirical examples of the effects of common-carrier-style regulation on the incentives of regulated firms to invest in infrastructure and new services,” Owen’s study reads. It goes on to say broadband investment prior to the rules “stands in stark contrast to the chronic underinvestment in heavily regulated public utility sectors in this country. Prominent examples include water utilities, electricity grids, and railroads.” A third analysis by former economics professors Andres Lerner of USC and Janusz Ordover of NYU made similar claims.

They argue portions of the net neutrality rules beyond Title II, like the “internet conduct standard,” let the FCC “regulate any practice that it considers “unreasonable.” ‘These risks are likely to have the effect of reducing investments and hampering innovation in the long term, in an industry where continual investments and innovation are key to providing services that benefit consumers,” their study reads. The economists say investments in network expansion, which typically require large “initial sunk and irreversible costs” and produce benefits only in the long-term are especially sensitive to those risks. So are new services and business models like zero-rating, targeted by the outgoing Obama administration 5 with the help of the internet conduct standard late last year.

Groups in favor of keeping the rules on the books, like the Internet Association, say investment has gone in the opposite direction. Using SEC and other data 6 directly from ISPs or used by ISP trade groups, the group shows investment going up 5.3 percent, or $7.3 billion, from 2015 to 2016. That’s higher than the period from 2014 to 2015 (5.1 percent or $4.7 billion), when the FCC was still debating the rules.

Follow Giuseppe on Twitter 7 Subscribe for the Latest From InsideSources Every Morning 8 References ^ could repeal (www.insidesources.com) ^ Ford’s study (www.insidesources.com) ^ FCC filing earlier this week (www.broadcastingcable.com) ^ According to Singer (haljsinger.wordpress.com) ^ targeted by the outgoing Obama administration (www.insidesources.com) ^ SEC and other data (internetassociation.org) ^ Follow Giuseppe on Twitter (twitter.com) ^ Subscribe for the Latest From InsideSources Every Morning (www.insidesources.com)

ACT Fibernet to invest Rs700cr to expand wired broadband infrastructure 0

ACT Fibernet to invest Rs700cr to expand wired broadband infrastructure

NEW DELHI: Atria Convergence Technologies , which offers wired broadband services under the ‘ACT Fibernet’ brand, today said it will invest up to Rs 700 crore this year to expand its infrastructure and presence across the country. The Bengaluru-based firm, which is present in 11 Indian cities, is looking to enter 3-4 new cities and expand presence in regions like Delhi-NCR. “We will invest Rs 600-700 crore this year to expand our infrastructure. It is not about just setting up base in a city…

the investment would include setting up infrastructure and maintenance,” ACT Chief Executive Officer Bala Malladi told PTI. This will be funded through internal accruals and debt, he added. The company, which commenced operations in Delhi a few months ago, has significant scale in cities like Bengaluru, Hyderabad and Chennai.

It clocked a turnover of Rs 1,300 crore at the end of March 2017. At the end of May 2017, it had 1.2 million subscribers. The company had started its operations in 2000 as a cable TV service provider.

Backed by investments from private equity firms True North and TA Associates, the company has now become India’s third largest wired broadband services firm after BSNL 3 (9.80 million subscribers) and Bharti Airtel 4 (2.09 million). The total number of wired broadband subscribers in the country stood at 18.23 million at the end of May, 2017. “We are looking at strengthening our presence in the Delhi market and will also expanding to Gurugram as there are significant opportunities in these geographies,” he said, adding that average data consumption on its network in Delhi is already higher compared to other cities. Malladi added that ACT will spend Rs 100 crore over the next 24 months to expand its presence in the Delhi region.

It has launched a new Rs 999 plan, under which users will get 250 GB data transfer at 75 Mbps speed. The Rs 1,499 plan will offer 500 GB data transfer at 100 Mbps. Asked how entry of players like Reliance Jio, which offer affordable data plans, had affected the company, Malladi stressed that there has been no impact. “Wired broadband users typically have high consumption and they want really high data speeds which wired networks can provide.

The lowest speed we offer is 20 Mbps.

Our focus is on offering reliable, efficient services at affordable prices,” he added. 1 2 References ^ Convergence Technologies (timesofindia.indiatimes.com) ^ broadband (timesofindia.indiatimes.com) ^ BSNL (timesofindia.indiatimes.com) ^ Bharti Airtel (economictimes.indiatimes.com)

Liberty Broadband Corporation 0

Liberty Broadband Corporation

Liberty Broadband Corporation (NASDAQ: LBRDA) and WideOpenWest (NYSE:WOW) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitabiliy. Profitability This table compares Liberty Broadband Corporation and WideOpenWest’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Liberty Broadband Corporation N/A N/A N/A WideOpenWest N/A N/A N/A Institutional and Insider Ownership 81.6% of Liberty Broadband Corporation shares are owned by institutional investors.

6.1% of Liberty Broadband Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth. Valuation and Earnings This table compares Liberty Broadband Corporation and WideOpenWest’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio Liberty Broadband Corporation $29.90 million 537.36 -$14.21 million N/A N/A WideOpenWest $1.23 billion 0.00 $448.60 million N/A N/A WideOpenWest has higher revenue and earnings than Liberty Broadband Corporation. Analyst Recommendations This is a breakdown of recent recommendations and price targets for Liberty Broadband Corporation and WideOpenWest, as reported by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Liberty Broadband Corporation 0 0 4 0 3.00 WideOpenWest 0 0 5 1 3.17 Liberty Broadband Corporation presently has a consensus target price of $96.00, indicating a potential upside of 8.63%.

WideOpenWest has a consensus target price of $20.83, indicating a potential upside of 24.98%. Given WideOpenWest’s stronger consensus rating and higher possible upside, analysts clearly believe WideOpenWest is more favorable than Liberty Broadband Corporation. Summary WideOpenWest beats Liberty Broadband Corporation on 6 of the 9 factors compared between the two stocks.

Liberty Broadband Corporation Company Profile Liberty Broadband Corporation holds interest in Charter Communications, Inc. (Charter) and its subsidiary Skyhook Holding, Inc. (Skyhook). The Company’s segments include Skyhook, Charter, and Corporate and other. Skyhook provides a wireless fidelity (Wi-Fi)-based location platform focused on providing positioning technology and contextual location intelligence solutions.

Charter is an equity method investment that provides cable services in the United States, offering a range of entertainment, information and communications solutions to residential and commercial customers. Charter offers its customers subscription-based video services, including video on demand (VOD), high definition television, and digital video recorder service, Internet services and voice services. Skyhook’s Wi-Fi location solution can be used to help carriers and emergency personnel offer E-9-1-1 services domestically.

Charter offers broadband communications solutions for businesses and carrier organizations. WideOpenWest Company Profile WideOpenWest, Inc. is a cable operator in the United States.

The Company provides high-speed data (HSD), cable television (Video), digital telephony (Telephony) and business-class services. The Company’s products are available either as a bundle or as an individual service to residential and business services customers. The Company’s services include data services, video services, telephony services, and business services.

Its business-class service serves approximately 3 million homes and businesses. The Company’s services are delivered across 19 markets through hybrid fiber-coaxial (HFC) cable network. Receive News & Ratings for Liberty Broadband Corporation Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Liberty Broadband Corporation and related companies with our FREE daily email newsletter 1 .

References ^ our FREE daily email newsletter (baseballnewssource.com)