I have been reading these lists since their inception and have enjoyed the
discussion. It is rare to be able  to watch a channel interact in such an
open way and, for us managing the business, it is extremely valuable. I
thought it was appropriate to share with you what we are trying to do and
why we are trying to do it. I know many of you know some of this, but too
few of you know all of it so here goes.

Tucows has been around since 1994 when Scott Swedorski began creating
software libraries of the best Internet software. By 1995 these libraries
became available for hosting by ISPs around the world and currently our
software libraries are hosted by over 1000 ISPs in over 90 countries around
the world. These libraries have always been popular with ISPs  as they
allow their users to download from their local network thus conserving
scarce inbound bandwidth. This is especially of value outside of North
America, hence its huge popularity internationally.
 
In looking at how to add more value to our ISP community we identified
domain registration as a real opportunity. Domain registration for ISPs was
an administrative burden, the supplier was not very helpful and prices were
unreasonably high. In addition, we identified domains as a "gateway"
product. One which was not valuable in and of itself, but was required to
provide higher margin, higher priced products such as hosting, corporate
e-mail, or high-end access. Thus, we wanted OpenSRS to be a service that
addressed these needs. It was an immediate success and we now have business
relationships with a broader more diverse group of not only ISPs, but also
Web Hosting companies, domain resellers, Web designers, VARs and suppliers
to business of many kinds (we call this group Managed Service Providers or
MSPs). We also saw it as only the beginning.

At Tucows we have a very specific view of what it takes to be a successful
MSP. First, we strongly believe that all of you are able to compete
successfully regardless of size. The most important competitive variable is
customer service. All Internet-related applications and services are still
somewhat complex, some very complex. They are commodities in the sense that
they are available from many different suppliers and are very price
competitive, however they are also highly differentiable in that they are
complex and end-users typically require some degree of assistance. Thus, we
believe that MSPs must excel in their core competancy and focus on
attracting and retaining customers.
 
MSPs need to own the customer relationship, build up loyalty through a high
level of customer service and use this loyalty to create additional revenue
opportunities. By outsourcing the supply of these additional revenue
opportunities MSPs can focus on marketing and customer service, attracting
and retaining customers. Any MSP which excels at these two things will be
HUGELY successful, and, if you are only good at them you will still be VERY
successful.

For us the challenge becomes how can we help MSPs be as successful as
possible. This is what we have started to try and answer with the
applications and services we will be launching and the features we will be
adding. You will start to hear more about some of these over the next few
weeks and, as always, we will need your feedback (and of course expect to
get it :-)). We expect to create more value going forward with our software
libraries, to continue to provide value with OpenSRS and to begin to layer
on numerous additional revenue opportunities through the OpenSRS platform.

The reason for describing all of this is to give you a sense of what we are
trying to do and why we are trying to do it. We are not trying to be all
things to all people. We are tring to help MSPs who hope to build
businesses be as successful as possible. We feel that if we are able to
succeed at doing that we will serve our business as well. Good karma and
all.
 
We have had the opportunity to meet many of you over the years and
always receive valuable feedback. We are going to try and encourage even
more of it by posting our trade show schedule with you and having a dinner
or gathering of some sort at each appearance. I think in 2000 alone we will
have been in 10 different countries by year end . We also encourage any of
you that will be in Toronto to let us know and come by when in town.

Of course your comments are welcome.
 
Regards

Elliot Noss
President, CEO
Tucows Inc.

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