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The infrastructure those companies have built already exists, and the subsidies are mostly going to pay debt. If the subsidies stopped, the companies would go b
by nevdka 6y ago
The infrastructure those companies have built already exists, and the subsidies are mostly going to pay debt. If the subsidies stopped, the companies would go bankrupt. Their assets would be sold to another company, likely at a price less than the debt. The new company could therefore have a lower debt burden, and wouldn't necessarily need the subsidies to provide the same level of service. The subsidies are stopping the market from efficiently allocating capital.
- ativzzz 6y agoSure, but what about the people who will have disrupted or potentially no internet access/support while the market is sorting itself out? If your plan is to be carried out, then there is ripe opportunity for a politician to come to these areas an say, "vote for me, I will protect your internet access" and then fight for the funding instead.
- nevdka 6y agoTreat it like any other utility - it continues to run, just without servicing its debts. Most of the expense is paying for capital. Stop that (because bankruptcy) and the ISP can be profitable, and sold to whoever pays the most.
- spullara 6y agoThere is some similar thing that happens with ski resorts. Something like 3 bankruptcies and debt buyouts before they are successful.