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Originally Posted by Chrysalis
"And no bank would offer a loan to someone they expected to go bankrupt. They just know that of x thousand people who walk through the door, Y of them'll go bankrupt, (and z of them'll go into enough debt for the bank to clean up on the interest charges, but not quite enough for them to stop paying ) so they pitch their rates accordingly so that on average the punters who pay up cover the losses on those that don't. They just don't know which ones that'll be."
Very good point as like many other things the customers who pay up are subsidising the loss making customers, various businesses work like this, but however for some reason a few on broadband have decided this is unfair practice.
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Banks look at loan applications and turn down those that they think are pretty bad risks. They don't think "I know they are a bad risk but they will tell everyone how easy it is to get a loan from us" and give them one for all that word of mouth advertising. If banks suspect that a potential borrower may have problems repaying a loan they will usually only offer one against the security of the borrowers home or a guarantee from an acceptable person.
Whilst NTL don't know how new customers will use their connection, they do know how their current customers use theirs and what impact speed increases will have.
NTL may have had a meeting where it was asked if it was possible to implement the proposed speed increases that have been announced for the first quarter of this year. The answer could have been that the increased speeds were possible, but not if the heavy users continued trying to max out their connections 24/7. They may then have taken the decision to implement the new speeds knowing that this would benefit over 95% of their customers from which they would get plenty of good word of mouth advertising. Caps would be introduced that would affect the really heavy users but how it will affect them is unknown to us until details are released.