Thread: [merged] Price increase
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Old 10-04-2004, 20:40   #358
Charlie_Bubble
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Re: Price increase
Quote:
Originally Posted by testcard
Maybe 1mb users cost ntl more than 600k users in a pro rata basis, a bit like a large lorry versus a van .
Therefore they need to return a higher profit on the 1mb service and charging more is an easy opition.
There's no doubt that if a 1Meg user fully utilises their connection they will cost NTL more, but that's what the extra £10 a month is for (Soon to become £13, unlucky for some?). NTL are now making the 1Meg service so unattractive in comparison with ADSL that it will drive people who want 1Meg for a reasonable amount, away! This is going into the bounds of forcing people to choose either to leave NTL or be satisfied with 600k.

I could get Bulldog 2Meg PrimeTime for £29.99 including VAT. That's £8 less than NTL! Why bother with NTL then? According to www.adslguide.org.uk, at the moment there are 14 ISPs providing 1Meg connections for less than ntl. Add the extra £36 a year to the yearly cost and that makes another 7 cheaper than NTL. That's 21 ISPs cheaper than NTL at providing 1 Meg connections.

NTL are lucky that their 600k service gives people that extra 88k over ADSL packages, otherwise they'd lose people from that too. That makes the 600k just a little bit more attractive than 512k ADSL, even though there are 39 ISPs providing 512k for less than NTL.
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