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Originally Posted by Chrysalis
Whats critical mass supposed to mean?
I cant see how 1000 customers providing say £10k profit a year is better then 100 customers providing say £15k profit a year, end of the day they are supposed to make money and enough so they can reinvest to improve the service as well.
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If there are too few customers no matter how much cash they generate (within reason, after all customers will only pay so much) it won't be worth running all the equipment and staff.
Ntl must have a set figure of customers where it becomes completely useless to continue. At least if they keep the customers they can flog them additional services (Mobile, sport/movies, BB+).
If you're talking about just BB and phone once the stuff is installed there must be minimal continual spend on the customer. If Talktalk can still make money on these customers (even with a new connection), even if it does take 18 months, then Ntl must be able to (as they are already with them).
Saying that Ntl should (if they ever had any business sense) be locking people into 18 month contracts so they can actually make some money back.
The issue of bandwidth can't be that bad with Ntl or they wouldn't be making their connections unlimited.