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Thread: Adsl4less

  1. #1
    Web Buddy Guest

    Default Adsl4less

    Not too much known on ADSL4LESS claims to be the cheapest Broadband in the UK which to me is not a good sign. They are probably a VISP but a VISP of whom ? 512Kbs for 14.99 inc VAT does not to me seem sensible.
    The company has been Trading for 3 months and is based in Jersey and claims to have 3000 customers. Thats a sign up rate of 1000 a month to me this seem an unlikely rate to achieve.

    My view is this is very definatly one for the risk takers



    https://www.adsl4less.com

  2. #2
    Tony_Keith Guest

    Default

    DNS, (217.72.188.94), for their site resolves to one allocated to Hotchilli Internet.

    So it would appear they are a reseller of Hotchilli Internet and are therefore a vISP.

    Details on Hotchilli Internet

  3. #3
    Web Buddy Guest

    Default

    So Hot Chilli sell ADSL to end users at 19.99 a month. Clearly thats a retail price but it does throw further doubt on the viability of 14.99

    Hotchilli seem to offer a Partner Package & Reseller Package neither are as low as 14:99. Could be a VAT trick here I am not sure if it works with services but for amounts under 15 I think VAT is not levied (Jersey being outside of VAT)
    Last edited by Web Buddy; 02-01-2005 at 04:00 PM.

  4. #4
    Tony_Keith Guest

    Default

    So Hot Chilli sell ADSL to end users at 19.99 a month. Clearly thats a retail price but it does throw further doubt on the viability of 14.99
    That price is Hotchilli's 'end user' price - not their price to a reseller.

    Their reseller price seems to be 16.99 plus an activation fee for 512K, so the price of 14.99 still doesn't 'stack up'.

    Hotchilli reseller prices

  5. #5
    Web Buddy Guest

    Default

    I am wondering whether ADL4LESS are avoiding the VAT. They say there prces include VAT but as they are based in Jersey where there is no VAT that may be how its done. There is an excemption for amounts under 15 I think not sure if it applies to services so that may account for some of it.

  6. #6

    Default

    Adsl4less have already been discussed in these threads...

    http://www.ispreview.co.uk/talk/sho...?t=16146&page=3
    http://www.ispreview.co.uk/talk/sho...79&page=2&pp=15

    They claim to have raised substantial funds from investors, enabling them to subsidize the cost.

    I probably wouldn't consider using them because they use Hotchilli.

  7. #7
    Web Buddy Guest

    Default

    Not exactly a sound business strategy and who exactly would lend money to a company so that it could sell a product at a loss. If I am investing I tend to like to get a positive return on my investment not a negative one.

  8. #8
    Join Date
    Dec 2004
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    Default

    Its not much of a loss really. I'm betting that most people for an extra outlay
    of just over ten quid will sign up for the one month contract as opposed to yearly. So putting the vat aside they would gain 19.99 on set up costs and lose
    24 on internet provision a net loss of 4.01 over 12 months. They seem to like to change the prices quite often,so if they increased the prices after say 6 months they would move into profit, at least at the gross margin level

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