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Originally Posted by Chrysalis
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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I believe the point was made that the banks will pitch their rates so that the customers they profit from will cover the customers they lose from? I take that to mean that the interest rates go up if too many people default on their loans. Put simply, they put their prices up to cover the losses from some customers.
Applying this example to NTL, do you think broadband prices should go up to cover the losses they are making on the top 5% of their customers?
BTW, as I had it explained to me, NTL actually might a slight loss on ALL 1.5 Meg users, but that is more than covered by the profits from the 300K customers.