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Old 17-08-2006, 10:54   #10
harmonyinfo
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Join Date: Jun 2003
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Re: disposable income

Quote:
Originally Posted by orangebird
Why should ntl have to cut their prices, or indeed freeze any price rises just because utilities and fuel are getting more expensive?
No direct reason.

But paid TV packages and broadband are perhaps luxury items where as utilities and fuel are essentials. So with a fixed disposable income and rising "essentials" costs, people are going to economise on the luxuries. That means people will look at NTL TV/broadband costs, see if they can get similar services cheaper (eg Sky with VOIP) or do without (eg Freeview). NTL don't need to lower their prices. But they will probably lose customers (as will Sky etc) as utility and fuel costs continue to rise.
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