Redten Internet offer FREE computer woth £500 if you sign up for 3 years @ £19.99 pm!

Safetyguy

benjimoron wrote: »

OK guys,

About a week ago I promised you some information and here it is!

I have fairly regular contact with Baber Gulzar, he has given me some insight in to what problems they face and what they are able to offer customers in the future.

Redten will no longer be offering unlimited internet, they have got to the point where they can no longer afford to finance unlimited broadband considering the cost of bandwidth has increased and customers are using more and more as time goes by.

Currently everyone is capped at 15GB. Redten are currently in talks to increase this limit to 40GB but this will be the top limit for the time being. They will continue pushing their suppliers for higher limits but the most they'll be able to offer for the time being is 40GB. This 40GB limit option will be part of a phone package. This will mean transferring your line rental and call charging over to the new provider (yet to be announced). The price for this currently looks to be around £16 which will cover your line rental and a package of inclusive calls. This replaces the line rental that you currently pay to BT. You will still be liable for your Redten costs (ie £19.99 a month).

I think I have pursuaded Baber to write to every customer (as required by the contract and law) to inform them of the changes to be made to their accounts. He expects this to happen within about a week once the new supplier has been finalised. On top of this EVERY customer should be receiving a phone call within the next few days telling them about the change of supplier and what options are available. I believe there may be an option to stay with NJP but this would only be a 15GB limit.

There will be no automatic upgrade to 24Mb, it is too costly to provide and with the new limits in place it would just see people hitting their limits much more quickly.

The web-site will be updated so that new customers are aware of the limits in place on the account they are signing up for. He was not able to give a time-scale on this but is going to ensure it happens.

Martin Lewis and his team have NOT been in contact with Redten according to Baber.

And finally an apology:
"Yes we have people buying there PC's and returning, plus people just had enough and do not care about their money and just want out which is sad because we must of emotionally put them at an all time low, which I can honestly say was due to other companies and not individuals within our organisation.
Our downside has been about how we have gone about it, and I hope with this interactive approach I can help ease the stress. I apologise to all customers who have been caught up in this but I can assure you that it was not intentional."


Sorry it's taken so long to get this info to you but I hope it was worth the wait.
Ben.

Thanks for this info Benjimoron.
I for one do not wish to migrate my telephone line from BT. Did Mr Gulzar say anything about customers who did not wish to take up his offer for a chage of contract, e.g. will we be able to terminate under clause 12 of my current contract?

handyandyg

XTM wrote: »

Good luck Andy ,keep us informed as im in the exact same predicament as you .Redten were informed of my situation but i only had 8 days to cancel my new contract and on the one occasion i got through to them i was promised a call back and never got it ,so i went over the cooling off period .I was only doing what i thought was right by the BT walled garden as i suppose you were.

I tell you all, even though I had my broadband restored through another provider and that I am still paying clode - this whole situation is unacceptable, I've spent hours and hours reading the posts on this site, checking companies house, searching google, etc etc. Now I feel that this has to come to the nations eyes (I like no others know how many people are involved in this?) but I am going to spend the day tomorrow ringing every journalist I can get my hands on to print this farcical story!!!

This is a scandal no matter how many customers are involved, by the directors, friends, family of the whole Watford/Redten saga!!!

Watch this space!

AndyG
xdeadten customer (mug)

dafftbint123

I shall sleep well tonight knowing its going so well for the guys at redten.

I know its hard for them to make a profit.

Lets look at the business plan.

PC at cost total £190-£230 , I know how much things cost. I once worked in buying. 7 years ago I bought a product by the 1000 at £1.09 each 10,000 at 97P. Then sold them retail at £14.49. Hike? NO you add in Head office/staff/shop/and then profit margin.

Then wholesale broadband between £7-£9. to about 10GB then 50p extra per GB. Its heavy users that cost them money.

Total PC Value £230

Total three year Broadband cost £252 - £346 ish.

Cost of Finance £70 Clode profit. With all 0% finance the cost is added into the price. Those who paid up front got a discount.

Rough total cost of 3 years £552.

Even at the lower cost of broadband, the margin is tight. I dont see how they balance.

those who pay 12.99 equates to 467.64, No profit.

those who pay 19.99 equates to 719.64, 167.64 profit.

BT even raised the cost of wholesale broadband prices.

I dont know how after staff costs/building lease other costs ect how they make a profit.

Its doomed from day one.

handyandyg

Benjimoron

quote"
I think I have pursuaded Baber to write to every customer (as required by the contract and law) to inform them of the changes to be made to their accounts. He expects this to happen within about a week once the new supplier has been finalised. On top of this EVERY customer should be receiving a phone call within the next few days telling them about the change of supplier and what options are available. I believe there may be an option to stay with NJP but this would only be a 15GB limit.
"

Benji I think this is a case of closing the stable doors after the horse as bolted?

Just analysing this post - are they changing suppliers again?????

good job they had several months of planning or christ knows what we would have ended up with!!!!! My A**E

AndyG
Glad not to be a deadten customer (no longer a MUG)

aScottishBloke

dafftbint123 wrote: »

I shall sleep well tonight knowing its going so well for the guys at redten.

I know its hard for them to make a profit.

Lets look at the business plan.

PC at cost total £190-£230 , I know how much things cost. I once worked in buying. 7 years ago I bought a product by the 1000 at £1.09 each 10,000 at 97P. Then sold them retail at £14.49. Hike? NO you add in Head office/staff/shop/and then profit margin.

Then wholesale broadband between £7-£9. to about 10GB then 50p extra per GB. Its heavy users that cost them money.

Total PC Value £230

Total three year Broadband cost £252 - £346 ish.

Cost of Finance £70 Clode profit. With all 0% finance the cost is added into the price. Those who paid up front got a discount.

Rough total cost of 3 years £552.

Even at the lower cost of broadband, the margin is tight. I dont see how they balance.

those who pay 12.99 equates to 467.64, No profit.

those who pay 19.99 equates to 719.64, 167.64 profit.

BT even raised the cost of wholesale broadband prices.

I dont know how after staff costs/building lease other costs ect how they make a profit.

Its doomed from day one.

Or just a cunning plan ?

We know what company supplied the pc's to RedTen. They subsequently went under, just happens to be a linked company. Did Savastore ever pay the company from whom they purchased pc's prior to selling to RedTen. Did they sell to RedTen at a much reduced price knowing they were about to go under ? Seems to be a result for RedTen if they did, leaving them with a decent margin to attract customers tied in for 3 yrs.

Harlzter

Will be having another stab or two at redten tomorrow as usual but I get a feeling friday 11th April will be a crucial day!

Redten_2

Harlzter wrote: »

Will be having another stab or two at redten tomorrow as usual but I get a feeling friday 11th April will be a crucial day!

I would not hold your breath if I were you!!! :mad:

firstclassidiot

Safetyguy wrote: »

Thanks for this info Benjimoron.
I for one do not wish to migrate my telephone line from BT. Did Mr Gulzar say anything about customers who did not wish to take up his offer for a chage of contract, e.g. will we be able to terminate under clause 12 of my current contract?

This is where we came in, there is no change, We just now appear to know what we already suspected.

F.

firstclassidiot

We heard that they were meeting OFCOM through ine of the missives to look at guidelines.

I rather think that OFCOM were meeting them to tell them whats what.

Hence the change of heart.

Nothing like the threat of a massive fine to concentrate the minds.

I suspect the 2 packages on offer are both with redten. Fast 4 have the capacity for running both local loop service with fast speed and tekephone and also the BT ipstream .

So you can stay as you are currently option 1
Move to there F4 faster speed service option 2

benji only mentioned 2 options
but there is the third option, the contract is still broken and is not to be unbroken; therefore we are entitled to regard the contract at an end and be released from the obligations of that contract.
--be given a mac code, hopefully the poster who got their mac yesterday indicates that redten have taken OFCOM advice and that all those who requested a mac gets one. Then its a matter of formalising the end of the contract and pushing for that because the resistance so far is not about concern for the customers its about retaining the monies now due back to the customers.

F.

Kevindowns

I think we should wait to see what Mr Gulzar has to offer. (see benjimorron post) I think most of the 10,000 users would be quite happy with 40GB but not many of those on this forum - it is at least getting near the FUP of most providers. For those it doesn't suit then a fair offer to leave should be made. Something like Keep the PC and make Clode payments "paid up" ie you have no more payments to make or perhaps a token £2 or £3 per month remaining on contract and again PC yours no more payments to make.

Sounds like Redten maybe admitting at last they messed up big time - probably a bit frightened to come out and face the music.
He maybe quite genuine and lay our fears to rest. I hope the phone line deal is only one of the options as I also have recently changed and very happy with deal.
He really needs to come up with an offer which we can either accept if its suits our circumstances or leave under favourable terms if it doesn't.
It would also be very reasuring if he sent everyone a Mac code just in case things didn't work out - we don't have to use it if we wanted to stay with Redten but at least it would mean he has done a brilliant sales job if we do voluntarily stay.

Its aslo a little unfair when people complain about the £500 PC. Prices do come down quickly in PC market - Price of LCD screen now about £100 , a year ago £160 and around £230 2 years ago. When I got my PC in Nov 07 I think the suggested value was £300 which I thought was fair value at the time for PC, 19" LCD and operating system.
He can't undo the misery he has caused some people but a solution for the future that suits most would be great without the aggro and time waste of going to court. I don't want revenge just reliable Broadband!

I'm not holding my hopes too high but it would be good news if could resolve issues for most users