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View Full Version : Could NTL lose it's licence?


zaax
15-04-2006, 23:43
As NTL is not inceasing it's foot print, and as mentioned in another thread, not even cabling new housing estates.
Whould NTL / Virgin be liable to loose it's licence if another co was to come along and start cabling these areas?

Marge
15-04-2006, 23:53
I think if a new company were to come along to compete then obviously they would have to invest a hell of a lot of money in cabling and it couldn't be just the little pockets of areas that aren't currently cabled, that would just be suicide as the tiny pockets of areas not cabled would not generate enough revenue to make a dent in the layout costs.

jrhnewark
16-04-2006, 00:34
They're not licensed, they bought franchises (or, rather, CableTel had a couple of franchises and bought a couple of other franchisees and National Transcommunications Ltd. and rebranded the whole thing to 'NTL'). They're not 'licensed', they were just the people that 'bought' the cabling rights to the areas.

NTL (and Telewest) have, in many cases, offered to give service to a few towns and been rejected - I used to live in Honiton in East Devon, which was one such case (sadly).

They can cable anywhere in their franchise areas they like, or not, as the case may be.

Really, the company aren't increasing their cabled-up areas today because it's not worth their while - it's an opportunity cost; invest in new areas, or make the current areas more and more inviting to consumers?

In a couple of years time, it's going to be easier and easier to pipe things down using new copper technologies - and in most cases, the copper's already there; the coax isn't.

Chrysalis
16-04-2006, 20:59
I would call half the country a bit more then tiny pockets of areas, but I know what you meant low populated areas. It wouldnt necessarily be suicide it depends on how long you willing to make a loss for and how much capital you have to cover these losses. Too many companies now days dont like investing anything that doesnt pay back within a year or 2 rather then a longer period like 10 years.

If I understand it right currently companies are allowed to buy these franchises then simply stop their and do no rollout, their needs to be some kind of financial penalty for that kind of business.

thelem
17-04-2006, 13:12
ntl and telewest both handed their franchises back in exchange for non-exclusive national licences. If another company wants to come along and cable an area then that licence won't stop them.

zaax
18-04-2006, 01:02
Who owns the duct?
Would it mean just a cable pull?

Graham M
18-04-2006, 01:03
Who owns the duct?
Would it mean just a cable pull?

Im not sure about the ducting, I would assume NTL/Telewest's property. And no for a new Cable Provider to come in, they'd have to go around and install all of their own network in the street.