>At 04:16 p.m. 2/08/2004, Jeremy wrote:
>>Steve Barr wrote:
>>
>>I would imagine that a new customer is worth subsidising in order to achieve
>>greater market penetration. Not so with a move.
>
>
>That is understandable, but $100?
>
>That makes it cheaper to move house, than to move ISP.

I think that was his point exactly... When you change house you are consider a
new customer (even though you aren't really). Therefore, even though it might
actually cost more then $100 to install service for you, Telecom is willing to
subsidise you by only charging $99 (or whatever the self install fee is) and
pay the rest themselves. However, with an existing customer, Telecom sees no
reason to do so and pass the full cost onto the ISP (who may pass it on to the
customer). Bear in mind, I'm not agreeing with this, in fact, I feel that it
probably doesn't cost $101.25 for Telecom to change bitstream ISP. However
that is my interpretation of what he is suggesting.

>Surely the work needed to be done (at Telecom) is no more than that of upgrading from 128k to 256k, and that cost nothing.

Actually, according to a few messages in over the past few days, this is not
true. The way Telecom is handling things is changing and as such, it's going
to be a little more complex for Telecom to change users from 128k to 256k. In
any case, just because Telecom doesn't charge you, doesn't mean it's free...

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