If you happen to sit at the top of the food chain of a telecom company, it’s been a real good couple of weeks. Last week, President Trump’s FCC stripped away Obama-era Net Neutrality regulations in a party-line vote, clearing the way for internet service providers to become the ultimate arbiters of online speech. But that was just the warm-up.
This week, as the GOP frantically rams through a huge tax cut for American businesses, things are getting even better for telecom. But don’t take my word for it. Here’s T-Mobile’s Braxton Carter talking to investors during a recent conference, according to Fierce Wireless.
“With the tax reform; and it is looking like it’s going to be a reality and we’re really excited about it; we’ve modeled the various versions of the House and Senate bill,” Carter said. “And the bottom line is we think that we won’t be in a cash tax-paying situation given the immediate expense of capex, given the reduction of the rates. I mean even considering what could be adverse, for a short period of time, limitations on the deductibility of interest, we are not going to be in a cash tax-paying position based upon the current modeling until 2024, very end of 2023.”
Yes, T-Mobile doesn’t plan on paying taxes until 2024 as a result of the new legislation. So what is the carrier planning to do with that extra windfall? Create jobs? Invest in infrastructure? Build out to rural areas? Nope. A $1.5 billion stock buyback.
Needless to say, customers aren’t thrilled.
@TMobile, considering the massive tax break you're likely about to get at the expense of the American taxpayer you should include free Netflix with your family plans, because the middle class likes dinner and a movie before we get fucked. pic.twitter.com/W3KaVxpKqH
— 🌹 (@Average_Ed) December 19, 2017
Featured image: Pixabay