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Old 02-06-2004, 22:22   #16
ian@huth
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Re: NTL price increase and their reasons

There are probably a couple of possible reasons why the speed increases were announced at the same time by TW and NTL.

I would imagine that both companies know fairly well in advance what the other is going to do, from information gained by fair means or foul. TW having a less complex structure could gain an agvantage over NTL if they so wished.

With all the talk of an imminent merger of the two companies it makes sense for them to be offering roughly the same products prior to the merger.

Does it really matter who was first as long as customers get an improved service at the end of the day.

What you have to realise is that NTL (and all companies) have to juggle product enhancements and pricing in order not to just remain competitive but also to maximise revenue. This can mean that sometimes pricing may not appear competitive but the higher price being charged would generate more revenue even after allowing for customers leaving because of the price than a lower price would generate with no churn.
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