Ofc, its perfect business sense to offer Fibre in areas that already have cable.
A lot of those customers will switch to BT, but ofc in the areas that have nothing, everyone is going with BT (one way or the other).
So they will think along the lines of.. (max customer take up).
A) 50% of the people in the Virgin Media area.
b) 100% of the people in the areas that have nothing, that they are going to get round to doing every line anyway.
You're right that to some extent people like me represent a captive market for BT, and thus giving us fibre might seem unnecessary. However I wouldn't call that a perfect business plan.
It ignores entirely the issue of customer satisfaction. Neglecting a portion of your existing customers might have no implications when there are no alternative providers, but sooner or later we'll get a choice, and if we've been treated like 2nd class citizens by BT for too long, we'll be off as soon as the opportunity arises.
Besides which I'm not sure where the "50% of VM cusomers" comes from. Do they get that in existing areas? I can't see what would motivate switching from VM to Infinity for most people.
Virgin are at a disadvantage because they are not rolling out any new areas, only trying to capitalise on the areas that they have.
Yes, but if they changed their minds about that, they'd instantly pick up quite a lot of disgruntled BT customers very easily.
Perhaps there are also disgruntled VM customers looking to switch (well, I know a few, so that's probably true...), but does it really sound like great business practice to simply be trading unhappy customers? Especially when concentrating on that simply generates *more* unhappy customers?
Similarly any use of 3(+)G mobile networks. My broadband is slower than using a 3G dongle, but the costs are currently not favourable. If the pricing model changed then I might well be telling BT where to insert their home hub.
ps: has anyone else worked out, that because of the inherent advantage that fibre has, SKY in a few years is going to have a defunct business model..... ?
If you mean in terms of delivering telly, I doubt it's escaped Sky's attention that internet might be a better delivery platform, but we're a long way from that actually being a feasible option for enough of the population. I can't even watch iPlayer reliably on low quality, but satelite delivers in glorious HD.
Ultimately I suspect some next-gen wireless product to be the killer of traditional broadcast, and not fibre.