
Originally Posted by
Frug
No, you're doomed 30 years from now. You'll see.
Also there is no possible way to force them to spend a percentage of profits on upgrades. That would require something like "legislation" which governments can't do.
Are you stupid or (and) did you just not read my previous post?
Upgrades are a huge capital investment. They are much, much more expensive than the profits made in the short-term that the licences last (4 - 5 years) and thus you CANT make a licenceholder do them because
To put it in very simple terms for the hard of thinking:
Imagine a licence if for 5 years, and generates 20 profit (before upgrades) each year
Upgrades cost 150 and are needed every 30 years
How can the licence holder fund the upgrade? It doesnt have enough profit to do so in the 5 years it has the licence/contract and, if it spends 150 of its own cash, it CANT guarantee it will keep the licence/contract for another 5+ years on expiry (if it could, this would effectively mean no competition) to recoup that investment.
You could make the licence holder pay money to the government (say, 5 a year) and then have the government provide the upgrades however this has two problems:
- the cost of upgrades is highly uncertain, and if the 5/yr isn't sufficient the government ends up taking all the risk.
- the benefit of the upgrades primarily goes to licenceholders in the first 10 - 15 years following the upgrade
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