The Tortoise and the Roadrunner

Members of the ISP-Marketing list discuss competing with the one Internet service no small business can provide, cable Internet access. Cable may be faster, but, like the proverbial tortoise, dialup is more reliable.

[February 24, 2001]

On the ISP-Marketing list in January, TE observed,

"In cable companies, we have some real competition for the first time. At one time, dialup ISPs could market having the fastest connections. Now we can't market with 'how fast do you really need to go?' because it points out our weakness: we are no longer the fastest ISP. But we do have service, stability, flexibility, and knowledge. In this light, how do you set your dialup or DSL ISP apart from everyone else?"

A number of respondents noted that price may well be the most straightforward differentiator:

[ML observed] "Not everyone wants or cares about speed or an always-on connection, nor are they willing to pay for it. We have customers who have installed digital cable and switched over to it for their phone service. However, instead of also buying into the cable modem, they stayed with us and plugged their analog modem into the digital cable. Had I not seen it for myself, I would never have expected this. For many people, even $39.95 is just too much for Internet access."

[EC added] "I would rather have cable access if it were less expensive than dialup. Then the wait for install and bad support would be outweighed by the speed. However, right now, the easiest way to get online is still dialup access. We get hundreds of referrals every month because we are the easiest path to getting online."

Others suggested some others things to market:

[CW noted] "As a cable modem user, if cable services fail, I must wait for restoration. When a dialup fails, I just dialup again and get a different port. I also often deal with cable modem failures. I have to power down and power up my cable modem several times a week to restore connectivity. As a user, I'm not impressed with that kind of 'always-on connection.' I do buy into the desire for speed, but reliability is a problem. Maybe you can focus on how dialup is more reliable. You could also talk up the greater security of dialup as opposed to cable."

[GG offered] "Focus on your DSL products: that way you can keep talking about speed."

EA argued that this shows how cable will force a significant change in the industry:

"You need to rethink your business plan and how you are going to compete in the new high-speed, always on, connected Internet. If you don't, you will play the role of the horse-and-buggy operators when automobiles were introduced."

—End