Quote:
|
Originally Posted by Daneel
No, it doesn't leave them making more profit if I leave. That was why I asked you about your understanding of the business.
As long as keeping me makes a positive contribution, i.e revenue > variable costs associated with supplying me with the service, it is in their interests to keep me as a customer.
I assure you that supplying bb at half the current retail price will still make a positive contribution for NTL.
|
Yuo can only assure me if you know the cost of providing services.
If you dont you cant assure anything.
Bear this in mind, they have to price the product at a level where when averaged out across their customer base it makes a profit, its a unlimited product meaning users can potentially download a lot of data each month and as such will lose ntl money. To offset this ntl need to charge light usage customers a price that makes a healthy profit so when offset against the heavy users they are in the black. If they are suddenly only making a tiny profit of light users then they can no longer subsidise heavier users and suddenly its no longer a profitable business. Add to this the cost of providing tech support customer services and to admin your account. Many of their TV services are break even or even loss making so if you have TV with ntl its likely your broadband has to subsidise that as well.
To add tho I cant blame customers for trying for the discount its in our nature, I just got ratty when people say its their right to have such a discount.
---------- Post added at 16:57 ---------- Previous post was at 16:51 ----------
How many people here would see talk talk 8meg broadband and bulldog 8meg broadband as the same product?
they are actually 2 very different products one is far superior to the other.
this is why its bad when people ring up ntl and say I want a price match to talk talk, because again they 2 different products. Broadband isnt just broadband their are many different ways to package it and provide it.