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Originally Posted by Shaun
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.
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Yes up to a point, in some cases what you say makes sense if you a small isp starting out you often need to loss lead get customers on the books then sell them more services.
If you already the largest provider in the country tho then I fail to see the need to offer discounts for life or rolling discounts that last for years to customers who have no intention of spending more money and will be a loss leader for life. In this case just tell the customer to pay full whack and leave. Their is no advantage in keeping the customer other then to gloat about customer count. Maybe ntl think they will be able to get all these customers signing up to virgin mobile services (since most probably are already triple play) who knows but profit is more important then head count especially in ntl's case. They paying the price now for limited coverage of the country and they as a result will have limited penetration.
---------- Post added at 16:04 ---------- Previous post was at 16:00 ----------
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Originally Posted by James Henry
I guess you haven't seen the huge thread regarding the discounts ntl are dishing out in response to the TalkTalk deal. Cable is 'kinda' competing against that already and TalkTalk haven't started connecting huge amounts of people yet.
Check this out: http://www.adslguide.org.uk/newsarchive.asp?item=2643
LLU is a lot more available than you think, and rollouts are still being done, virtually all of that rollout outside of London.
Yes due to line lengths DSL can't match cable on a number of lines, however for value and Mbps per £ the formula does change a bit.
BTW why aren't you correcting me on how cable offers lower contention and more consistent speeds, seeing as I directly disagreed?  |
Every LLU line I have played on the speeds have been nothing short of amazing and no sign of contention anywhere, this is on both ukonline and bulldog, the 1gig limited bandwidth is certianly a lot more impressive then a shared 27mbit.
I agree if ntl could "really" compete they wouldnt need to offer cash incentives.