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NewNet CEO Expects Customer Losses

Posted: 05th Jan, 2007 By: MarkJ
The CEO of UK ISP NewNet, Peter Coates-Buglear, has spoken of how he expects the provider to lose some customers following their recent price hike (HERE). It's hoped that only the heaviest of users will throw in the towel:

Coates-Buglear spent much of New Year's Eve on the site answering customer complaints. He said the company had given out a lot of MAC numbers but few have been activated yet: "We'll see what happens at the end of the month.". He said they chose Christmas deliberately so customers would have time to decide what to do.

Coates-Buglear told the Reg: "600 new HomeB customers have totally filled one of our 155Mb pipes. We've tried to be upfront about what we are doing rather than restricting bandwidth quotas or packet shaping but from a financial point of view we had to do something. There is a general trend for customers to use more and more bandwidth but the last couple of months have been particularly bad. We've got a good reputation among heavy users and to be honest that's worked against us. We've gained people from some of the ISPs which have gone out of business and also from PlusNet."

The Register goes on to note that it's not all bad news, with NewNet aiming to avoid any further rises over the coming 12 months.

We suspect that other ISP’s considering price adjustments may be waiting to see how BT’s forthcoming reductions and Ofcom’s new MAC rules play into their future business models.
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