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?
But once again we forget the major priority of British business. Profit before anything else. Even if providing a cut-price service will in turn increase profits in the long-run, companies can’t seem to bear giving away anything at a price lower than it needs to be.
Comment by Chris Brock — 17 January 2003 @ 7:01 pm