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Originally Posted by Chrysalis
On the argument of subsidising, its a way of life.
Road tax is better value for those who travel hundreds of miles a day and worst value for someone who uses their car rarely, but its life.
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on the roads you wont find 5% of all road users making 67% use of the road network! and those that use the roads most will pay the most in petrol taxes - the road tax element is a fraction of the cost to the road user.
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Originally Posted by Chrysalis
...In all forms of marketing to gain market share involves having less profitable customers, even some that make a loss...
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if the stats are right then these arent less profitable customers - these are customers that are paying the same as everyone else but using 10 times as much. there's no way a set of customers who are taking that much of the service are 'less profitable'.
No service provider wants a minority such as 5% sucking out 67% of the service they offer. see this
http://www.staywarm.co.uk/pages/defa... a montly rate note at the bottom "Powergen Staywarm is designed for households that do not use very large amounts of energy, some households may therefore not qualify to join." Also note that some Staywarm customers who are considered 'heavy' users have been forced to leave or pay a higher tarriff.
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Originally Posted by Chrysalis
...what hasn't been mentioned here and taken into account is what happens if this 5% customers stop recomending ntl to people and instead bad mouth ntl, the effect is less total customers to ntl and less turnover...
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a drop in the ocean as you still have 95% on board and word of mouth isnt as effective as dropping leaflets through doors offering 3 months free etc...
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...the rule of business is to keep all customers happy if possible.
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true but not if 5% are taking up most of your resources. assuming these stats are true then if you get rid of the 5% (50,000 customers) you can replace them with another 500,000 without any network upgrading.
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...I am sure it wouldnt be too hard for ntl to accomodate people who use more traffic at a reasonable price point....
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I think the only way to go for high users is making them pay per extra GB above 40GB and only available on the 3mb service. when they start paying it will encourage people to only download what they need.
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The top tier is almost 50% more expensive then the middle tier and it allows 33% more traffic. Giving that high speeds is only truly useful for file transferring you would want the extra traffic to go with it and this is why I think out the 3 tiers the top one stands out by far as the worst value
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and the middle tier is 40% more than the low tier but gives you 100% more - so the middle one is the best value. I suspect the top tier will come down to £35 and is priced so highly because they think the people who go for it are willing to pay a premium.
going back to this 'statistic' - 5% use 67%... it could simply be that the 95% is made up of people who hardly use the internet! ie. they just browse for a couple of hours a day.
