Obama Asks For Broadband; Are Jobs Cuts the Answer

[Commentary] Things are going so well for AT&T that it can spend $2 billion each quarter simply to buy back stock and boost its stock price. That's $6 billion through the first three quarters of 2008 that won't help to lay one new foot of fiber, or bring faster service to one new rural community, or help one new school get connected. All it does is jack up the stock. At the same time, AT&T's investment in its network is about the same level. That combination signals to analysts that AT&T is focused on harvesting the money in the short term. Through three quarters this year, AT&T's capital expenditures were $14.8 billion, the same as its depreciation. For comparison, Verizon's capital expenses were $12.5 billion, with $10.8 billion for depreciation. AT&T also announced it is cutting 12,000 jobs and will lower its capital expenditures next year.