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Old 20-04-2004, 17:29   #33
andygrif
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Re: My super amazing plan for ntl cable broadband

I'm not sure that this is completely correct. It would be unwise for ntl to provide any service that is loss making, so I doubt that any of the three services actually do this. I think it is just that broadband is making a lot MORE profit than tv and phone services. TV is a very small profit margin, as most of the money will go to the content providers.

The debts come from (with hindsight) wild spending and acquisition frenzies, with the company totally over-commiting themselves financially. It's this that they are still paying off (albiet a lot less than they really owed) and it is this that ntl need to address - hence the rather substantial price increases.

I saw Hussein quoted somewhere, saying that the increases are in the areas where the services cost more. Call waiting now costs 50% more? A second line, having already been installed for seven years costs 20% more today? Not sure how true that is!
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