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Originally Posted by ian@huth
Most NTL broadband customers will not notice any problem with their service so why spend a large sum of money upgrading when they could use it to fund buying Virgin. Rebranding NTL as Virgin could attract many new customers which would mean more cash to invest.
I can see a time coming when it would be foolish for NTL to invest in upgrading the present infrastructure. The restrictions that are there at present will probably mean a different means of broadband delivery.
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Oh ok, most of our customers are too dumb to know their is overselling going on and those in analogue only areas can stay on analogue knowing that buying a mobile phone company will make the tv broadband and phone service so much better.
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It will have to pay 0.25% royalties on its revenue for three decades - with a minimum annual payment of £8.5m - to Virgin Enterprises for the use of the brand name created by Sir Richard.
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I see the virgin shareholders laughing all the way to the bank with this deal.
I have been researching broadband regulation, and if ntl were under the jurustiction that eu isps are under they may have already been in trouble for the performance of their 10meg, the telewest merger would also likely have been blocked. The uk regulation is a bit of a joke.
If it is foolish to upgrade an infrastructure to handle a product they sell then why sell the product? At some point ntl are either going to have to do major investment or do an embarassing pull out of some areas.
---------- Post added at 22:23 ---------- Previous post was at 22:21 ----------
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Originally Posted by etccarmageddon
a pointless merger in my opinion. linking up with a mobile company to offer 4 play. erm pun not intended! I like my NTL cable modem, sky for tv and orange for phone. nothing would take me into having a virgin mobile from ntl.
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Also questionable how it is not monopolistic, drawing customers into one company for 4 different market sectors, similiar to how people complain about tesco and co selling films, music and clothes.