Quote:
Originally Posted by Mr K
A far more imaginative strategy would be to scrap line rental, and lay down the gauntlet to Sky/BT. Instead they're going for the trying to fleece the remaining customers. All they've offered lately are 'free' (ha ha !) BB speed upgrades, to speeds no ones got any use for anyway.
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All well and good but where do you suggest the company makes up the money they would lose from line rental?
Sky/BT bury a fair amount of the cost of providing broadband into line rental, as do VM. VM aren't anywhere near profitable enough that they could just ditch that income.
VM don't make much on the TV. Broadband is wildly variable in terms of profitability. Line rental helps mitigate both of those.
They could make some savings migrating to VoIP but it would be a while before these could be realised all over the network. Have to get everyone onto VoIP first.
Due to the amount of English language content Virgin Media UK and Ireland have the heaviest bandwidth users of the Liberty family. This has to come at a price.
---------- Post added at 00:24 ---------- Previous post was at 00:23 ----------
Quote:
Originally Posted by jungleguy
VM operate on the theory of inertia....they put prices up and most customers do nothing. What I don't understand is that after all these price rises the share price has slumped by 30% over the last 6 months.
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A lot of shares have dropped somewhat from their peak. Nothing to do with the companies, more bubble-icious stock market.