Best of the ISP-Lists

Service, Not Technology, Wins ISP Wars

Members of the ISP-Tech list urge new ISPs to look to customer service, not new technology, to win subscribers away from local competitors and from the phone companies.

[February 20, 2002]

On the ISP-Tech list in January, MF asked,

"Does anyone know about technologies that may be on the horizon to increase the bandwidth available to dialup users? I'm not talking about V.92, but a technology that will actually allow ISPs to make money in dialup again. Is it FCC regulation that's hindering the production of anything that can beat the 56 Kbps barrier?"

A number of respondents noted that the 56 Kbps barrier is pretty solid:

[VB explained] "The limits are the telephone system, not the FCC. PSTN phone channels simply aren't capable of transferring more than 56 Kbps, period. Dialup modems will continue to be around for quite some time, but the technology is stagnant."

[PT agreed] "It's not FCC regulations or research that can't beat the 56 Kbps barrier. The switches just aren't built to do anything more."

RR suggested that it's best simply to focus on things other than speed:

"The dialup ISPs that make money do so not by using a whiz-bang technology, but through solid business practices. Customer support can make a big difference. A happy customer is one that's not on the phone with your support techs; an unhappy one knows your support guy by name. Focus on your support, and you'll be fine. Forget whiz-bang technology: that's the kind of thing that knocks ISPs out of business quick."

MF complained that it's just not possible to compete with dialup any more:

"Around here, there is no market for dialup any longer. Everything is cable and DSL. It doesn't matter how great your support is at 56 Kbps when cable and DSL are available."

A number of respondents recommended various ways to hold onto market share:

[PF observed] "Most broadband companies have so many restrictions that you may be able to get some points by offering more options. Offer hourly plans. Offer multiple-PCs-per-home plans. Find out what DSL and cable won't let them do, and offer that service."

[JL added] "Our area has been saturated with DSL and cable for several years now, yet our dialup ISP continues to grow nicely. There are thousands of potential subscribers who either live too far from their local phone switch to obtain DSL service, or who just don't want to spend the money for broadband. And other customers maintain their dialup account with us in addition to a DSL or cable account: it's cheap insurance when those high-speed services are so frequently unavailable."

— End