HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Corruption Responsible fo... » Reply #9

Response to kpete (Original post)

Tue Apr 10, 2012, 11:35 AM

9. The graph and interpretation is misleading

 

Cost to put up cell towers has dropped as manufacturing and operations costs have dropped, so it's not so hard to put up a cell tower as before. The towers are now smaller and easier to erect. Also, there's less demand for towers are many places are already well saturated with towers. I mean, eventually, there should be no need to add any more towers, and perhaps just maintenance of existing towers would be enough. Also, revenue has gone up exponentially, so the percentage cost allocated to capital expenditures shouldn't stay at the same rate. Capital expenditures should always decrease over time, as a percentage of revenue. Otherwise, you have capital expenditures as a variable cost growing comparably to the rise in revenue. That would be a bad business model. Cell phone companies don't even make their phones, so even the manufacture of phones, which is a variable cost, is not included as a capital expenditure.

The graph is correct, but the interpretation is completely wrong and misleading.

Reply to this post

Back to OP Alert abuse Link to post in-thread

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 19 replies Author Time Post
kpete Apr 2012 OP
ProgressiveProfessor Apr 2012 #1
uponit7771 Apr 2012 #12
belcffub Apr 2012 #2
uponit7771 Apr 2012 #13
belcffub Apr 2012 #14
ProgressiveProfessor Apr 2012 #19
mojowork_n Apr 2012 #3
leftyohiolib Apr 2012 #4
mojowork_n Apr 2012 #5
leftyohiolib Apr 2012 #10
saras Apr 2012 #6
ProgressiveProfessor Apr 2012 #15
accord99 Apr 2012 #17
Egalitarian Thug Apr 2012 #7
ProgressiveProfessor Apr 2012 #16
marshall gaines Apr 2012 #8
LineReply The graph and interpretation is misleading
usrname Apr 2012 #9
mojowork_n Apr 2012 #11
facultyandstaffshow Apr 2012 #18
Please login to view edit histories.