Quote:
Originally Posted by Horizon
VM get money for doing nothing. Line rental is in effect a connectivity charge. They do nothing and earn loads of dosh from it. But its short sighted. They could've marketed their advanced cable network without old copper telephone technology and still undercut rivals on price. It would cost them initially, but I am certain they would gain in the long run.
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While I agree in spirit with what you're saying, I don't think Virgin is completely incentivised to get rid of the PSTN network. As others have stated, it's a huge cash cow, almost free money just by making it cheaper to take with broadband. To put it another way, say they only make £10 from line rental charges each month and broadband is £25 (example only). If they dropped line rental from the price, they'd realistically need to increase their customer base by about 30% to break even. That's not going to happen, certainly not overnight.