One of the leading internet providers in the country, AT&T® recently promised that they would make massive broadband internet investment if President Donald Trump gives them tax breaks. This has been one of the major tricks of several internet service providers when they are in need of a tax break.
Several popular internet providers in the country had earlier promised that they would make future broadband investment deals in return for approval of an industry deal or for immediate tax breaks. In most cases, the government approves the conditions put forward by the companies because delivering high-speed internet service to rural areas is uneconomic. So, they feel that it is better to cut a deal with a private industry to accomplish it.
However, the reality is that most of the telecom companies have failed to keep up their promises and they often expand the deadline multiple times. This is the reason why several experts in the field of telecommunications are worried about AT&T’s recent promise of investing $22 billion in new infrastructure in exchange for immediate tax cuts.
The promise from AT&T® came after a meeting that was held at the White House a few days ago. The president of Verizon®, John Stratton lauded praised President Trump’s “focus on U.S. job creation and U.S. leadership in these industries,” whereas AT&T® CEO Randall Stephenson said, “It’s been dizzying the pace that the regulatory playing field has been cleared and been made more clear for companies that invest like ours.”
Stephenson added, “We’re on pace to invest around $22 billion in capital in the United States this year if we have some kind of tax reform, see that rate move down, we’ll consider stepping up our capital investment.” However, reports from several sources indicate that the Telco has made the same promise to deliver broadband to 100 percent of people in its regions for more than a decade. Additionally, reports also claim that AT&T® has used this as a leverage in numerous acquisitions and mergers too.
On the other hand, Charter Communications® was recently fined $13 million by the New York State, as the telecom giant failed to meet the conditions put forward by the state when they approved a merger. Charter® had promised that they will be upgrading their internet speed to 100 Mbps and they will be deploying broadband to approximately 35,000 new homes.