Plusnet - The short

The bubble on this share has finally been pricked. Get in now for the long ride down.

THREATS -

Cable - becoming powerful with mergers and able to offer super fast speed and no downlaod limits. Will be reaching more households as a combined entity and will unbundle areas where it doesn't reach. Far superior broadband to Plusnet.

SKY - will shortly launch its own broadband from the acquisition of Easynet. Will be much faster and better than plusnet and may include a VOIP service. Anyone who has SKY already and who is also using plusnet will undoubtedly say goodbye to plusnet.

BT - BT will soon offer TV through the phoneline which means it will offer a strong reason to take a bundled service with them. Why go for a virtual provider when you can get great TV and phoneline/internet in one with BT.

Bulldog will bounce back - much faster service and better bundle than Plusnet

Carphone warehouse and free Internet access - Plusnet's users are likely to be very price sensitive and this will encourage them to go to free providers.

Great downlaod use - Plusnet's model is based on limiting downlaods. What happens when people want further capacity I.e. to download a film or music.... all those Ipods out there... Why not pay £2 extra a month and have something like Cable's service which is unlimited. Also why does anyone want the worry of considering if they have broken their download limits?????????

Falling Broadband prices - also offer a huge threat to Plusnet as does Wimax and Wifi




THE BULL ARGUMENTS DEMOLISHED

Plusnet will offer VOIP - Who cares? You can get better VOIP by signing up to Vonage.

Plusnet will offer TV through the internet - Who cares? They don't have the budget or expereince to do anything decent so it is likely to be a third rate service from a fourth rate broadband provicer.

Plusnet are growing fast - That only depends on them keeping their existing customer base. The customers who are in a cable area or who have a satellite should switch. The fromer gives unlimited useage and better service. The latter will be a better deal with a bundled product. So growth depends on not only getting new customers but keeping old ones. The latter simply won't happen as the market becomes more competitive.

Plusnet has good customer relationships - not from some of the stuff I have heard from the other thread. and this is a commodity product... who gives a (*&*( how some call operator sounds on the phone....

IT MADE HAY ONCE BUT THE COMPETITIVE FORCES WILL SEE THIS DOG ONLY GOING DOWN.

SLAPPER