Ya know, we've looked at this many times over the past couple years, and
even tested it for a bit.

Fact is, people like unlimited, and not having to guess.  I, myself, being a
fairly lite user of the Internet, would still always opt for an unlimited
plan--even if I knew my bill may be lower on a pay-per-use plan.  I have
unlimited cell phone minutes, txt messages, etc.  If I could pay for
unlimited utilites, I'd certainly do that too!

We've got the infrastructure in place for a pay-per-use, and could activate
it at anytime.  We tried selling it about a year ago, and people just didn't
understand the concept.  People aren't used to it--most people got online
when Internet was $19.95/mo for dialup (or, $22.95 for AOL!), and don't
remember the 10 for $10 dial-up packages.  Nobody knows what ISDN with 300
hours is.

We currently offer 12Mbps service for $24.95/mo.  This makes us the fastest
in the area, and the cheapest.  We have local sales, support and
installations.  We decided the way to win is to shape traffic--we offer
three 12Mbps packages; one with a guaranteed minimum of 1.5Mbps, 4Mbps and
6Mbps.  If you do nothing than browse, share pictures, etc. (i.e. "normal
use") you'll always see the 12Mbps.  But once you fire up a torrent or
Netflix, you only get that speed for 10 minutes--after that, you get your
guaranteed minimum.  Prices double from 1.5 to 4, and double again going to
6Mbps.  We have never had a complaint about speed or price with this
structure.

I'm hoping that the "big guys" do go to pay-per-use plans.  Just one more
way we can advertise and win against them.  "Tired of counting your bits and
bytes?  We're unlimited"  Look at Cricket wireless--they've just exploded
with customers on their unlimited-everything service.

Just my 2 cents

Jayson

On Sat, Nov 7, 2009 at 2:24 PM, Travis Johnson <[email protected]> wrote:

>  The cellular guys don't charge by the minute... I have an unlimited plan
> on my cell phone. I can also get unlimited text and internet access for
> $9.95/mo extra.
>
> People don't want to guess what their internet bills are going to be from
> month to month. Would you want that at your own home?
>
> Travis
> Microserv
>
>
> Gary Garrett wrote:
>
> You sound like the cell phone company.
> I am convinced the big failure in my business model is I charge by the
> month while the cellular guys charge by the minute.
>
>
> Travis Johnson wrote:
>
>
>  Hi,
>
> You are talking about having to add additional resources (radius, etc.)
> to track it. Then you have to bill it. Then you get to deal with the
> phone calls from users that say "My computer wasn't even turned on
> during those times. Remove the charge or I will go elsewhere."  So, even
> that one extra phone call costs you money (because you have to think
> about scaling). Imagine if you have 100x the number of customers you
> have now... does the same solution work? Probably not.
>
> The easier solution would be to call that customer and get them to
> upgrade to the next plan up (which would provide higher speed as well).
> This works very well for us... and then I have that guaranteed extra
> income each month, even if they don't use it.
>
>
>  
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