That’s an interesting assertion made in passing in this interview with Barclay Knapp, head of NTL.
I always presumed that the cost of providing broadband for cable companies might be lower than the cost for the telcos using DSL but not greatly lower. Then I read this:
“…it is broadband where NTL is likely to make most money. Analysts estimate gross profit margins on the service can be as high as 90%.”
If companies like Telewest (my cable modem provider) offered £10 a month broadband instead of £25 I wonder how many more TV and telephone customers they could eventually sign up once they were “hooked” using broadband?
