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Originally Posted by patchwork
I've never seen any proof of that!! How do you know how much money they make on customers?
I rent some web servers, I can get a server for £40 per month, included in the price is 1200GB of bandwidth per month, that works out at roughly 3p per gig. (I'm sure NTL will pay a lot less, probably closer to 1p per gig)
You "claim" a customer using 10GB per day causes NTL to loose money. 10GB * 3p per gig = 30p per day, or £9 per month in bandwidth charges. (probably closer to £3 per month)
So that customer costs £9 per month plus the cost to send a bill, plus electric cost, plus equipment hire costs etc...
Apart from a slight fluctuations in bandwidth charges all customers cost the same, same electric cost etc.. apart from people that call customer service a lot, these customers cost the company the most.
Pete
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Souns a bit simplistic to me. This may be even more simplistic, but if NTL operate on a nominal 20:1 contention ratio, and everyone on a 2MB connection were to 'max out' their connections, wouldn't the theoretical speed drop to 100K for everyone? Should NTL then invest in upgrading the network to provide a 1:1 contention at 20 x the price?