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How do they sell it for £25?

jedsouth

Regular Member
Been wondering as a potential customer, how Toob sell this service at £25 plus free installation.

Looking at recent articles on here, no other altnets or other fibre offerings like Virgin or Openreach connected ISPs offer anything close for a 900mb or 1GB service, most from £35-40 and up.

Yes, I know they do not offer a landline service, like some do and you have to pay £8 for cgnat, that I expect these days 99% of customers do not need.
But still its still amazing value, even if you went for a few pounds a month for a voip phone offering.

Have seen a few recent installations from Toob In Fareham. Pompey and one in Havant and I must say from what I was told from their installation day and on seeing their boxes and cable runs etc it looks like their installation team, a few attend, have been excellent.
Their cable is run immaculately laid and all in and outside holes plugged nicely.
They spend time with the customer checking all their devices work.
All this done for free.

Don't get me wrong, happy to pay such a great price for what looks like great service, but how are they doing it for this price.
 
Been wondering as a potential customer, how Toob sell this service at £25 plus free installation.

Looking at recent articles on here, no other altnets or other fibre offerings like Virgin or Openreach connected ISPs offer anything close for a 900mb or 1GB service, most from £35-40 and up.

Yes, I know they do not offer a landline service, like some do and you have to pay £8 for cgnat, that I expect these days 99% of customers do not need.
But still its still amazing value, even if you went for a few pounds a month for a voip phone offering.

Have seen a few recent installations from Toob In Fareham. Pompey and one in Havant and I must say from what I was told from their installation day and on seeing their boxes and cable runs etc it looks like their installation team, a few attend, have been excellent.
Their cable is run immaculately laid and all in and outside holes plugged nicely.
They spend time with the customer checking all their devices work.
All this done for free.

Don't get me wrong, happy to pay such a great price for what looks like great service, but how are they doing it for this price.
Fattening up (on customers) on investors' money, that's how. A tale as old as time.
Same way Silicon Valley unicorns came to be.

On the other hand, things are not as expensive as we think (or are made to think) they are. After they have recouped their initial infrastructure investment, ISPs should be able to afford to lower the prices.
They won't, because greed and shareholders, but they could.
 
No Unicorns here in Hampshire, that I know of, your comment there made ma laugh :)
Yes know about investment upfront for any infrastructure product. Not that I care to over think that, that's more for those finance boys in the City and the board to worry about, but yes Toob need it to get on the ladder.
I did get an A in A'level economics back in 1981, not that I ever put it to use in my career.

But, just not seeing compared to all other similar broadband businesses in UK, really how Toob are doing it so well or pricing it as they are at a customer level. They must yes have put up a good case to investors, partners, board etc and must have raised some eyebrows in the industry in comparisons. Probably not so much from the likes of Virgin, BT (Openreach) Sky etc.
Maybe they have worked it out well on a small localised customer base and it works for them. Hope for their sake it works out.
Like I say, whatever they are doing, they are so far doing well and providing a good customer friendly, working service model and reliable service, from those locally that I know using it.
Its good to see that some of these altnets seem to be getting this investment, Toob has had quite a boost there of late and for them to cost it hopefully right, as seen a few altnets seem to be over stretching possibly and getting close to financial troubles.

Like the idea of a local isp. Despite having Sky for many years and been pretty reliable, Sky can be troublesome to get hold of easily and communicate ongoing for a fault to rectify, especially when they pass onto a no contact Openreach engineer/s, which thankfully on most occasions for me have been good.
But some neighbours have gone through pain at times to get a small fault easily rectified and jump back and forth with their isp and Openreach in what seems like a mess and very sloppy service at times, for what should be an industry standard..
 
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Been wondering as a potential customer, how Toob sell this service at £25 plus free installation.
Part of the answer is: the bandwidth cost is almost zero to them, so providing a 1G service versus a 100M service costs them essentially the same. Typical household usage patterns are that high-speed users download the same amount of data, just in a shorter time.

However, the other part of the answer is, it smacks of desperation. Altnets now need to do *everything* they can to tempt people to move away from the well-known brands to start paying for their service. The network has already been built and paid for, so a customer paying £25 is much better than not having a customer at all. If this is at the expense of margins, then so be it; the most important figure in the business case is the assumed take-up percentage, and they have to try everything to meet it, otherwise the investors will walk.

They will no doubt be hoping that once someone has had the line installed, they will become a "sticky" user and less likely to want to go through a second installation for Openreach FTTP, even if prices go up at the end of the initial term. However, to retain users they will also have to provide both a reliable service and a good customer support experience, and those cost money too.
 
Virgin must be begining to feel the effects of the altnets on their customer base, 5 of my neighbours have moved away from them in the past month for our new Altnet, Virgin offered me 250mb for £17 per month to stay with them. I am paying £21.99 for 150mb but like @candlerb writes its not all about speed, my new Altnet rings me back and follows up on its promises. Its no good having a good product if the support and customer service isnt there to back it up
 
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Saw forum the person get offer of £29 per month for 1Gig on Virgin Media after they cancelled the service because of overpriced.
 
Saw forum the person get offer of £29 per month for 1Gig on Virgin Media after they cancelled the service because of overpriced.
... and the ones that pay for that are the customers that are paying full price, it's not a very ethical business model IMO.
 
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... and the ones that pay for that are the customers that are paying full price, it's not a very ethical business model IMO.

00.webp
 
My brother son get VM 1Gig standalone for £27 a month (discount applied to his account for 24 months minus £35 off) from virgin media call him up to changing his mind to stay with them! While some customer are paying £45 to £62 a month for 1Gig. Seem unfair!
 
... and the ones that pay for that are the customers that are paying full price, it's not a very ethical business model IMO.
I agree, Virgin makes it feel like "if they can rip you off, they will".

Virgins Business model is the Caveat emptor model, let the buyer beware !!!
 
I agree, Virgin makes it feel like "if they can rip you off, they will".

Virgins Business model is the Caveat emptor model, let the buyer beware !!!
Virgin is the worst. Really bad company to be a customer of and their pricing.. You'd think they use gold cables..
 
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Virgin is the worst. Really bad company to be a customer of and their pricing.. You'd think they use gold cables..
They are an American cable company. They follow the same model as Comcast, Spectrum, Altice, etc.

They upgrade when forced to, invest as little as possible, outsource everything they can and charge as much as the market will tolerate.

Standard.
 
I agree, Virgin makes it feel like "if they can rip you off, they will".

Virgins Business model is the Caveat emptor model, let the buyer beware !!!
In the 1980's I was a customer of a good company called Telewest, that later became NTL:Telewest and subsequently merged (and ruined) with Virgin in 2007. Luckily I'd moved to France a couple of years before that. I had a good ADSL connection to start with and later a 900Mbps +free phone to 200 countries +free TV all for the vast sum of 33 euros (approx) £28/month and the price never went up.
 
In the 1980's I was a customer of a good company called Telewest, that later became NTL:Telewest and subsequently merged (and ruined) with Virgin in 2007. Luckily I'd moved to France a couple of years before that. I had a good ADSL connection to start with and later a 900Mbps +free phone to 200 countries +free TV all for the vast sum of 33 euros (approx) £28/month and the price never went up.
Cos UK always RIPPED OFF under Tory government! Crappy UK
 
From an investment POV the Alt-Nets will also be ripe for acquisition, consolidation is bound to happen at some point, so if you can back one that creates a sustainable business, which requires customers (hence the attractive price) and passes a large customer base then bigger players could make a attractive offer, Toob are already in
partnership with Cityfibre.
 
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