[ian@huth]

NTL, like all companies, have very large fixed costs which are not dependent on customer numbers or revenue. These costs have to be met from customers subscriptions. If you are a NTL customer you have to pay your share of these costs. Your share however will reduce the more customers and revenue that NTL get. It is in your interest therefore for NTL to acquire new customers. NTL, like most other companies, give special offers to new customers to encourage them to join. The number of new customers receiving those special offers is relatively small in relation to the total customer base and it is possible that those customers are paying less for their services than the cost of providing them. NTL hope that the new customers will remain long term customers and increase their spend with the company thus turning them from loss makers to profit generators. It would be impossible for all customers to be given the same special offers as this would reduce profitability to the extent that there would be no cash for infrastructure maintenance and renewal.

Don't be fooled into thinking that all NTL special offers generate a profit for the company. Likewise prices charged by other ISPs may be at a loss making level just intended to gain customer share and ultimately will have to increase to move the company into profitability.