Well, our rates are quite a bit lower than that.

Around here, we get $59.95 for a standard business connection, $39.95 for a standard residential connection. Special requirements can raise these prices. I have one customer paying $200 month for 128k. He was paying $400/month for ISDN.

We advertise or speed as 8-12 x dial-up, (around here, 26.4k is a fast dial-up), but we deliver 512k or more depending on system load.

But, in competing with cable/dsl, we know can not match their pricing. ($14.95 for dsl? Give me a break!) And matching cables raw download speed doesn't happen either.

We compete by not only being an WISP, but by offering local e-mail and web hosting, computer sales/service, network consulting/repair, remote control/monitoring services and wireless/wired web cameras. We are not 'just' an ISP.

Doing all the above allows us to be 'one point of contact' for ALL their IT needs. About 30% of our business customers use us like this now. Oddly enough, we are starting to get the same thing with our residential customers.

We have lost some to cable/dsl. We have also gotten some back. The first time Version/SBC blames the customer router when it is a bad modem and it takes 3 days to get back on-line.... In most cases, we get our customers back on-line the same day.

It is all about service....

Bob Moldashel wrote:

OK...You have a customer that is paying $159 month for 256K service. No other service providers are available in the area except a full T1 for $599+ per month. 8 Months later cable modem shows up and offers $79/month for the first year for new sign ups with 3-4 Mb downloads. Your customer paying $159/month still has 10 months left on his contract and is looking to cancel saying the service is slow.

What do you do?

Do you let the customer out of his contract?? Do you enforce the contract and possibly loose the customer at the end of the contract? Do you match cable's price and speed? Do you try to give him a better package and risk him "jumping ship" anyways?

I would love to hear everyone's ideas and input.


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