Thread: Virgin Media urges Sky to raise broadband prices
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Old 04-02-2015, 19:56   #11
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Re: Virgin Media urges Sky to raise broadband prices
Quote:
Originally Posted by Ignitionnet View Post
The share price rising doesn't actually give the company any extra cash to use building networks.

Their network equipment suppliers, staff and contractors want paying with cash, not share price increases.

Anyone who feels fleeced can obviously take their business elsewhere.

---------- Post added at 20:46 ---------- Previous post was at 20:43 ----------

What could be done, however, is for the parent company to not start buying its own shares back in order to prop up the share price and instead invest in infrastructure.

However, share buybacks seem to be the in thing at the moment. They may knacker companies in the longer term as they aren't investing as they should be in plant, R&D, etc, but hey it makes shareholders happy in the short term.
Over the next few years they are investing heavily in the network. As basically it needs it to,"Keep Up".
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