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Originally Posted by Stuart C
Actually, I do alright with T Mobile. TBH, with the amount of phones people appear to be buying (we have one of the largest mobile phone markets in the world), I suspect most people don't give a monkey's about cross network charges.
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And they probably pay through the nose as a result. More fool them. I guess it really depends on what phones you regularly call. If your mates are on T-mobile you win, if not you lose. Point is, it makes no sense to switch to T-mobile just to get a quad play with NTL(Virgin). Unless of course they give free cross network minutes.
So is it a good business model ? It's a bit like a sandwich shop installing a wine bar, to try and compete with a purpose built wine bar.
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Originally Posted by Stuart C
Also, as Chris said, you underestimate the power of branding. Sky (in the early days at least) was inferior to Cable, yet they still succeeded. Why? Initially it was because they had enough money to buy the rights to the Premiere league footy matches, and price everyone else out of the market. Now, they have a good brand. Why can Nike get away with charging 120 pounds for a pair of trainers, when exactly the same pair would cost 30 from a no-name make? Because they have a good brand.
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Maybe I do underestimate, I've never been a consumer sheep. IMO, the proof of the pudding will be the quality of the content that the deal brings in. Much in the same way as Sky did with the footy, NTL(Virgin) need to put up a good lineup of VoD/HD content etc. or people will start to see through all the hype.