ntl 1mb BB at £9.99

[Chrysalis]

Then if they cant afford it why do it at all?

If they cant afford to expand their network then they should concentrate on making more profit from existing customers and slow down their growth rate to something they can handle. This can be achieved by stopping the silly offers for new customers so current customers dont get annoyed and ring for discounts. It will also allow them to improve service quality.

[ian@huth]

Originally Posted by Chrysalis

Then if they cant afford it why do it at all?

If they cant afford to expand their network then they should concentrate on making more profit from existing customers and slow down their growth rate to something they can handle. This can be achieved by stopping the silly offers for new customers so current customers dont get annoyed and ring for discounts. It will also allow them to improve service quality.

Not being able to do it for all customers doesn't mean that they can't afford to do it for some. You could say that they cannot afford to not tempt new customers to join them. Most customers appreciate that most companies do offer new customers incentives to join. You have a lot to learn about marketing.

[Chrysalis]

I know enough about business thanks having got qualifications in business studies I also have experience in the internet industry.

1 - A company doesnt need to agressively acquire new customers to get profit growth.
2 - A company doesnt need to do incentives 365 days a year to gain customers.
and the big one
3 - A company doesnt need to have the incentive run through the ENTIRE length of the contract.

NTL seem to be very very desperate for customers, the fact that they have high customer turnover costs them money they make less ÃƒÆ’Ã¢â‚¬Å¡Ãƒâ€šÃ‚Â£ÃƒÆ ’‚£ per customer. Customer installs cost money, Customer cancellations cost money, Giving customers discounts to stop them leaving costs money, Charging customers slightly above half price for an entire year costs money, Upgrading infrastructure which has to be done in response to growth costs money.

All this means NTL make less money per customer, fact is if the customer pays the full price from day 1 they are much less likely to leave at the end of their min contract period to jump ship to the next offer available, another fact is if there is no new customer offer then someone ringing retentions cant play on the fact that ntl can afford to price the service lower, fact is existing customers feel satisfied and are more likely to give good reccomendation to friends and family.

You never answered the question wether you think NTL make a profit at £9.99 if they dont you think it is good business practice to sell a service at a loss for the year with no garantuee of full turnover of that customer?

NTL need to stop comparing themselves to BT and look at the market as a whole, people WILL pay more for a better quality service and there is a type of customer who isnt looking for the best priced deal all the time, that is the type of customer that is profitable. This probably explains why telewest has been making more profit.

This is good for consumers in that they can take advantage of NTL but it makes current customers feel they been ripped of and want to leave and the customers that NTL attract will be low turnover.

[ian@huth]

Chrysalis, qualifications do not equate to full knowledge and understanding. I have come across hundreds of people with qualifications in business studies and many other fields who couldn't last a month in the real world.

Do NTL make a profit out of giving someone 12 months broadband for £9.99 per month? I very much doubt it when you consider the costs involved in installation, supply of equipment, billing, etc. So why do you think they do it? Or do you think that they do make a profit? Did NTL make a profit out of dial-up internet when they were supplying it for free?

Did Dixons make a profit out of dial-up internet when they launched the Freserve product in 1998? Why did they launch a subscription free service when no other company had one? Perhaps the one million customers (30% of the UK internet market) that they signed up in the first five months could give you a clue.

I don't feel ripped off because new customers are getting a better deal than me. I look at the price I am paying and the service I am getting and compare it to offers from other ISPs. I have a service that does what I want it to at a competitive price and with a very good service level. I may be able to get a slightly cheaper and faster service but I couldn't be sure that it would be as reliable as my NTL broadband service has been. There would also be all the hassle of changing suppliers, an important fact and a bit of a pointer for you.

[etccarmageddon]

how would you like it if say your gas company offered half price gas for the next 12 months for new customers only. or BT offered free line rental for 12 months for new customers only.

offering 1meg BB for £10 a month for 12 months is bizarre esp when it's only for new customers or those existing ones that find out about the offer.

[ian@huth]

Originally Posted by etccarmageddon

how would you like it if say your gas company offered half price gas for the next 12 months for new customers only. or BT offered free line rental for 12 months for new customers only.

offering 1meg BB for £10 a month for 12 months is bizarre esp when it's only for new customers or those existing ones that find out about the offer.

I look at everything that I have to pay for on a regular basis and see if I am on the best deal for me taking into account price, quality, service level and any hassle involved in moving. I am not bothered about what other people are paying.

BT telephone would probably be very slightly cheaper for me than my NTL service but the potential saving is not sufficient to make me get me off my backside and change.

[etccarmageddon]

it would annoy the hell out of me if I found out other customers were getting it at 'cost' price.
__________________

nb. for the full duration of their contract!

[Matth]

It still seems a bizarre, even desperate deal...

Inertia will probably enable then to keep SOME of the customers when their special price and minimum contract both end together, but unless we are going to see a new, lower cost "basic" broadband - maybe a PAYG with the same £9.99 charge for a limited quota, then the rise from £9.99 to £17.99 ought to be enough to trigger a search around.

[Chrysalis]

I have experience in the internet market as well. The response of other customers in this thread backs up my belief that I am right about customers been ****ed off.

I also doubt you need a gcse to work out that what NTL are doing is just plain dumb.

Your example of dixons is not comparing apple to apple

1 - Freeserve was a new brand to get customers to use a new brand that kind of incentive is needed, hence pipex did a similiar thing when they launched. NTL already have a large customer base so why are they doing it?

2 - Dixons were not in the same finincial trouble NTL are in now so service wasnt compromised, examples of compromised service are NTL not been able to afford to upgrade all areas to digital so yes current customers are affected.

3 - Dixons had no current customers to **** of since there was none it was a new company.

[etccarmageddon]

Why did they launch a subscription free service when no other company had one?

a)because they changed the business model from making profit from the subscription to using the kick back gained from using an 0845 number. and b)because someone always has to be first!

[vileda]

I've had the NTL BB from the 1st day it was available in my area and currently pay £28.49 for the 300k service incl line rental so thought it would be a good idea to ring up and see what NTL would say to "please can I have the 9.99 deal" or even "what deal can NTL do" since Tiscali have 2MBit 15GB at the same price

I got the Brand New Customers Only story, a load of bull about not being able to use a BT phone and ADSL at the same time and the distinct impression that I could go to another ISP as long as I didnt ring NTL (I was being nice honest. I worked in a call centre for 7 years )


I'm going to try Customer retentions tomorrow (0800 052 1474) tomorrow

but if nowt is happening then I'll be across to the Alternatives to NTL threads.

Does anyone know the magic words to use to the retentions team?

[Jules]

You shouldn't be paying that any way! I am on the 1meg and only pay £17.99, I am not a new customer and I didn't have to go through retentions to get it as it is now standard I would ring them up and ask what they are playing at

[ian@huth]

Originally Posted by whyme38

You shouldn't be paying that any way! I am on the 1meg and only pay £17.99, I am not a new customer and I didn't have to go through retentions to get it as it is now standard I would ring them up and ask what they are playing at

The £28.49 includes telephone line rental.

[Jules]

Opps thanks Ian but they should still have been upgraded by now shouldn't they?

[Chrysalis]

If someone is on say the 3 for £30 deal and then orders sky sports do they keep the discount with the package change or is it automatically put on full price?