Monopoly Profits

Michael Ellis does a useful comparison. He mentions how one reason many support the recent regulatory changes with Telecom is its very high level of profitability with a 16% profit on its income. That is $916m profit off $5.6b turnover.

He then looks at the Government’s performance last year. Its $8.5b surplus off $44.4b revenue is a 19% profitability figure. So perhaps we need to break up the Government monopoly also 🙂