Quote:
Originally Posted by m419
In the long run, it might be better for Virgin Media to keep it as it is for now, if they open up there network for others to use, they will charge less and Virgin Media will loose custom from its own customer base and possibly revenue.
Example:
Virgin Broadband 10MB alone: £18 per month
Then Virgin Media then allow say Easynet or TalkTalk to use the same network for the wholesale price of £5. Obviously Easynet and TalkTalk will sell it for £10, and Virgin will see customers flee to them and although technically, Virgin Media are still generating revenue from the customer by being on the network, Virgin Media will only get the wholesale rate and not the retail price as well.
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Ok going by your example VM sell the lines to EasyNet/TalkTalk for £5, they sell this to the customer for £10
VM should still be quids in as they wont have to provide Customer/Technical phone support for these customers and if they did I'm sure they would charge a premium rate number to reclaim the costs.
They also wont have to install the equipment in the customers property and if they do I'm sure they will charge.
I'm sure there are various other costs they will save on.
I hope VM do do this and all the other providers. My work is still fed by Cable & Wireless (i thought they were merged with NTL back in the day, obviously not) we have 2xGigabit lines and various other fibre VPN to other sites/companies/services etc... so the infrastructure is already there in most cities.