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uk.telecom.broadband (UK broadband) (uk.telecom.broadband) Discussion of broadband services, technology and equipment as provided in the UK. Discussions of specific services based on ADSL, cable modems or other broadband technology are also on-topic. Advertising is not allowed.

BT pulls another scam trick try to hoodwink customers



 
 
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Old April 1st 04, 03:18 PM posted to uk.telecom.broadband
Thomas Sandford
external usenet poster
 
Posts: 39
Default BT pulls another scam trick try to hoodwink customers

Alex Heney wrote:
On Mon, 29 Mar 2004 16:14:48 +0100, "K-Tel Ronco"
wrote:


"half_pint"

So enjoy meeting lifes ******s - whatever you do don't give up working to
live by your wits, half a living ain't much fun I'm told.

I don't see this as bad for residential customers - where is the scam?


There isn't any scam.

There are a few customers for whom these changes will actually
increase overall cost, because they don't make many calls on their BT
account.

Some of those customers (generally those who seem to lack any
capability for reasoning if their posts here are any evidence) seem to
think this makes the whole thing a scam.


It's not a scam - it's just use of their monopoly position (within the
legal UK definition of the term) on local loop provision to make it
harder for competing companies to take a share of call traffic.

BT know they need to make X pounds a month from the average customer,
who makes on average Y minutes of calls a month.

They do this by chargeing A pounds line rental and B pounds per minute
(where B is a fraction) on calls such that

X = A + BY

However by increasing A and reducing B in a way that maintains X
they can break _any_ business model that the CPS companies come up with,
thereby putting them out of business. Of course once that happens
BT is free to increase its prices at will.

BT can only do this because their historic monopoly on local loop
provision makes a near impenetrable barrier to breaking into that
market (ever noticed how wonderfully profitable Telewest and NTL are?).
By dint of a combination of obstructionism and goalpost moving they
have suceeded in making local loop unbundling almost impossible. Lack
of competition on local loop allows BT to get away with as much as they
can slip past Oftel/Ofcoms noses.

Unfortunately "Business Ethics" is an oxymoron...
--
Thomas Sandford |
Paradise Green Technical Services: S'ware/Hw design and Theatre Tech. Services
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