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Originally Posted by ian@huth
Do you honestly think that giving a new customer free installation and 1Mb broadband for a year for £9.99 per month generates a profit for NTL? You obviously have little concept of marketing if you do.
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I got enough business sense to know its dumb, me and you both dont know if it is profitable or not, but you still havent commented on the fact that if it isnt profitable then why are NTL offering it. The type of customers this offer will lure in wont stay when it goes back up to the normal price, they will be of to the next provider offering a deal to new customers. So clever NTL will have succeeded in paying someone to use their broadband.
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Originally Posted by roy
You pay £37.99 for it? I think you should phone them up then as you should be on 2mb for that. 2mb doesnt even cost that I dont think
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BT charge £17.99, NTL is £17.99. It is competitive. I don't see what you're saying other than NTL will get customers and BT will get customers. A £9.99 incentive gets NTL more customers, which earns you more profit in the long run. Side by side (if there was no £9.99 offer) people may choose BT because they have been around longer and have a bigger reputation. Although the phone rental is far cheaper on NTL so you would think people would prefer NTL over BT.
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Then why not £9.99 for only 3 months or why not just £15.99, why the need to undercut by almost 50% for an entire YEAR this kind of thing really pees of current customers.