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Originally Posted by FrankieX
Personally, I don't see why ntl couldn't keep up with Telewest in terms of upgrading their network capacity so that the caps would be unnecessary
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There are a couple of possible answers to this:
First, in the last couple of years they became one of the largest defaulters on a loan in history. The bond holders took control, and are demanding a good return. This means little or no money for expansion. The problem NTL have is that if the Bond holders don't get what they want, they may call for the money back. If this happens, NTL will be (to put it bluntly) buggered, if not bankrupt.
Second: As far as I understand it, in certain areas, the Network is more than capable of coping uncapped, and providing the same speeds as Telewest. It's just that in other areas, the network is busier anyway so will not cope as well.
I suspect Telewest have this problem in certain areas as well, but are busy pushing the higher speeds of the network, so are less likely to admit it doesn't cope.
Having said that, I can only speculate that the main reason for the cap was that in certain areas, where a lot of people are running p2p apps such as Shareaza 24 hours a day, the network can be slowed down quite severely by these apps.