Wireline networks have the weakest returns on invested capital with a 1.5 percent gain over the last decade. Wireless networks had a meager return of 0.3 percent. Cable garnered a 2.5 percent return. Satellite networks had the best return on invested capital at 5.5 percent. Others stocks --AT&T, Comcast, Dish, Sprint and Verizon -- have negative returns, he argues.
Thursday, February 24, 2011
Low to Negative Returns on Communications Network Investment?
Bernstein analyst Craig Moffett argues that, over the last decade, the returns on invested capital in communications networks in U.S. markets have been anemic, at best. He argues that economic value creation has been, in aggregate, barely positive.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
Costs of Creating Machine Learning Models is Up Sharply
With the caveat that we must be careful about making linear extrapolations into the future, training costs of state-of-the-art AI models hav...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
Who gets to use spectrum, and concerns about interference from other users, now appears to be an issue for Google’s Project Loon in India. ...
No comments:
Post a Comment