I am going to be specific here What mechanism do you have in place to 'protect' your network from the person that downloads 24 hours a day, 7 days a week. If you sold me a connection that was 256k for $39.99 I would feel that I have a right to use it as much as I want.
I am not saying bit cap, I am saying tiered pricing. I am sure that most here can break their clients into 3 groups; 1. the people that rarely use their Internet, possibly 300-500 megabytes per month. 2. The average user that probably uses 2-5 Gigabytes per month. 3. The bandwidth hog that is using 20 Gigs plus per month and complains when their speed teest falls for 5 k bits per second. My argument is that ISPs need to have a mechanism to make the people in the last group either pay their fair share, or go somewhere else. John >-----Original Message----- >From: Sam Tetherow [mailto:[EMAIL PROTECTED] >Sent: Monday, January 29, 2007 11:46 PM >To: 'WISPA General List' >Subject: Re: [WISPA] Service Offerings - Competing > >I'm sure much of this will already have been covered (been out for a >couple of days). But since it was addressed to me.... > >Don't know the details of the truck driver story, but if it wasn't his >responsibility all he needs to do is leave the truck blocking the >loading dock and walk into the store and ask the manager to call his >boss and they can get it sorted from there. > >As for the pickles, if Walmart decides all they want to pay for a gallon >of pickles is 3.97 that is their right. No one is forcing anyone to >sell at 3.97. > >The legislature of CA is costing CA millions of dollars each year, not >Walmart. If the legislature wants to pick up the tab for workers who >aren't insured by their employer that is their own fault. Are you going >to complain about every other business in CA that doesn't insure their >employees? > >A little bit of research on the internet will also fill me in about >black helicopters and tinfoil hats... > >The trick is conveying to your customer what your plan is in terms that >they understand. I'm in a primarily residential market and compete with >DSL. The selling point of my service, is just that service. I still >have to compete with Qwest pricing but I only have to be close on cost >to speed and sell them on the service. It isn't that hard to sell >service vs the phone company. > >But I have to disagree with everyone that is on the bitcap bandwagon. I >understand fully the issues that come with p2p and streaming video but >that is what is driving the internet today. > >I take pride in providing the internet to my customers and I want to >provide the type of internet service I would expect from my connection. > >The internet is no longer about web pages and email it is about >podcasts, video streams and downloaded movies and if we aren't ready to >provide that type of service they we are just relagating ourselves to >being the new dialup with 128K plans and draconian bandwidth policies. > >I don't see bit metering (paying by the bit not on a transfer rate) as >being a billing model for the future because every other communication >model is trending away from it and I doubt the customer will put up with >it given a choice. Phone service is abandoning the per minute pricing >for pricing plans which are tending toward unlimited minutes (mobile to >mobile, home network, after hours). > >Also as more and more services migrate to the internet people are not >going to want to worry about their bit caps. The idea of having to look >at the file size of a netflix movie download and they try to figure out >how much it is going to cost me to download (above the netflix cost) >reminds me all to much of the old dailup days when we were paying by the >minute. > >As a businessman you should be trying to squeeze every last dime out of >your customers. The trick is to provide the service that will make them >want to pay every last dime of it. > > Sam Tetherow > Sandhills Wireless > >John J. Thomas wrote: >> Sam, Walmart has made most of its money by screwing others. >> >> Truck driver makes delivery to Walmart ad unload pallets. Goes to have >> receiving sign for them. Receiving refuses to sign, and says that *after* >> the truck driver *unloads* the items off the pallets, then he will sign. >> This is NOT the truck drivers responsibility. >> >> Walmart decides that a Gallon jar of pickles shoud cost $3.97-*regardless* >> of whether the company can make 10 cents on that. Company sells $3.97 jar of >> pickles and goes bankrupt after that. >> >> Walmart is costing the State of California Millions of dollars each year >> just by telling its employees " we won't give you that benefit, but if you >> go apply for State assistance, they will." >> >> A little bit of research on the Internet will show you to what degree they >> have gone to to screw others. If that is the way you want to do business, >> then so be it. Me, my family and anyone else I have influence over won't do >> business with you-period. >> >> You have to structure your pricing in a way that you can successfully >> market. I have a problem with those people that say "512k unlimited $39.99 >> per month". Then, when you download a single movie, they cut your service. >> That is Dishonesty-period. If you tell your clients, 4 Gig for $39.99, then >> there is no issue. I'm sure MANY are going to jump in and tell me I'm wrong, >> and they certainly have a right to. At some point, this will have to be the >> way it works-you can't sell unlimited pipes for $39.99 per month, when you >> have to pay $100 or more per month-the economics are not there. >> >> I applaud Marlon for what he is doing, and I hope that he will review his >> pricing regularly. If he finds that he can drop the rates a bit, or adjust >> the limits upward, I'm sure his clients will appreciate it. They should also >> appreciate that fact that he isn't trying to squeeze every last dime from >> them. >> >> John Thomas >> >> >> >> >>> -----Original Message----- >>> From: Sam Tetherow [mailto:[EMAIL PROTECTED] >>> Sent: Thursday, January 25, 2007 10:49 PM >>> To: 'WISPA General List' >>> Subject: Re: [WISPA] Service Offerings - Competing >>> >>> There actually are some of us out here that don't have this luxury in >>> our markets. My total market is approximately 3000 people (not >>> households) and I have to go 45 miles in any direction to find another >>> town with more than 80 people in it. >>> >>> I'm not saying this in a 'woe is me' tone, just stating a fact. Some of >>> us operate in the well under 10,000 people areas where 'finding a higher >>> ARPU customer' is not really a viable option. We have to be all things >>> in order to have enough customers to pay the bills. The top 10% of my >>> market would get me less than 100 customers and they would have an >>> average income of less than $100K. >>> >>> As a slightly off-topic aside: (those that don't want to listen to my >>> ramblings can safely stop here :) >>> >>> I do find the Walmart reference interesting. Since I have started this >>> business I have tried to read as much as I can in terms of business, >>> marketing and sales books. Having come from a purely tech background >>> it astounds me how clueless I really was until I started a business. >>> >>> One of the things that I have struggled with is the price point vs >>> service aspect of the business. Obviously being the cheapest option has >>> it's sales advantages, especially in the residential best effort >>> internet business. But as we all know, being the cheapest makes it a >>> bit harder to pay the bills. >>> >>> When I read business and marketing books they all espouse the higher end >>> customer is the better customer view. I understand this view, you have >>> a valued customer who is willing to pay a reasonable price for quality >>> service. You look at brands like Lexus and Bose and think, these are >>> the people I need to be like. These companies have made millionaires. >>> >>> But what I find interesting is that companies like Walmart and McDonalds >>> who do live in the quantity, not quality world have made billionaires. >>> The trick seems to be, if you can somehow manages to be the cheapest and >>> do it right you can make a boat load of money and it doesn't have to be >>> at the expense of the customer. >>> >>> Sam Tetherow >>> Sandhills Wireless >>> >>> Peter R. wrote: >>> >>>> John J. Thomas wrote: >>>> >>>> >>>>> But, the model will work if you bill by the bytes.... >>>>> >>>>> If Joe is paying $40 per month for 6 Gig and gets throttled at 6 Gig, >>>>> then he has a disincentive for keeping going. If he is paying $40 for >>>>> unlimited access, he has no reason to slow down. >>>>> >>>>> Charter cable is doing 10 meg down/1 meg up in some markets for like >>>>> $99 per month, how can you compete with that? >>>>> >>>>> John >>>>> >>>>> >>>> Well, the reality is this: you can't compete with it. And why try? >>>> Why not move upstream to a larger ARPU customer? >>>> Cable & ILEC can handle and deliver service to the masses cheaply - >>>> for now. >>>> But there is a segment of every population that needs more than the >>>> cheap dumb pipe attached to the cheap dumb support. That is the GAP. >>>> That is where the money is. >>>> >>>> That is where your market is. But it may mean selling beyond just a pipe. >>>> >>>> I've been preaching this for years - and clients that have listened - >>>> narrowed their focus; but the shotgun (marketing) away; have done well.. >>>> >>>> See articles here: http://www.rad-info.net/newsletters/walmart16.htm >>>> And there: http://www.rad-info.net/newsletters/winninger.htm >>>> >>>> Regards, >>>> >>>> Peter Radizeski >>>> RAD-INFO, Inc. >>>> (813) 963-5884 >>>> >>> -- >>> WISPA Wireless List: [email protected] >>> >>> Subscribe/Unsubscribe: >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> Archives: http://lists.wispa.org/pipermail/wireless/ >>> >>> >> >> >> > >-- >WISPA Wireless List: [email protected] > >Subscribe/Unsubscribe: >http://lists.wispa.org/mailman/listinfo/wireless > >Archives: http://lists.wispa.org/pipermail/wireless/ > -- WISPA Wireless List: [email protected] Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
