Broadband Networks: Slim Returns

Wireline networks have the weakest returns on invested capital with a 1.5 percent gain over the last decade, argues Sanford Bernstein financial analyst Craig Moffett.

Wireless networks had a meager return of 0.3 percent. Cable garnered a 2.5 percent return. Satellite networks had the best return on invested capital at 5.5 percent.

At least in part, that's one reason DirecTV shares have trounced other companies in 8-year returns, he argues. Other stocks—AT&T, Comcast, Dish, Sprint and Verizon—have negative returns, says Moffett.

But here’s where the returns get tricky. Once you add up the costs of various telecom deals, the returns look much worse.

Broadband networks: Returns on invested capital stink | ZDNet