The first thing I would do is to look carefully at the TOS of the Cable contract. Usually, they are very restrictive, but that may not matter to this customer. Then you need to consider, can you deliver 3-4 Meg to compete? If not, how much can you deliver? Many people will pay a little more for good service, witness those that buy ADSL from someone other than ILECS, and pay $5-20 per month more. If you could possibly offer him similar speeds for $99 per month, do you think he would stay?

John

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.

-B-


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