Substantial Profits in  the Broadband Ecosystem: A Look at the Evidence
George S. Ford, PhD & Lawrence J. Spiwak, Esq
The Phoenix Center
April 22, 2010

Ford and Spiwak examine “data-driven decisionmaking,” and suggest that any public policy decision making should be accompanied by evidence.  Furthermore, what should be data-driven proposals and conclusions that do not include evidence lacks any substance.  Data as evidence provides support to whatever claim is being made.

The authors point out that recently Free Press provided comments to the Federal Communications Commission regarding the Open Internet that made several claims about the profits of Broadband Service Providers including, “major phone and cable companies are currently earning record profits,” and “companies like AT&T and Comcast … make substantial profits.”  However, the authors contend that no evidence for these claims was presented and a proper investigation would be necessary.  Further investigate of the data showed that larger BSPs make profits equal or lower to the average S&P500 firms.  Therefore the authors feel a more accurate descriptor of the BSPs is that they make average to below average profits.

The authors then take a review of the evidence and compare BSP profits with other companies like Google and Ebay.  They conclude that all presentation of claims should be backed by sound evidence.

You can find the article here.