Does Your ISP Business Use the Internet?

A company called Simplified sells software that enables end-users to order and manage their own Internet accounts. CEO ("big head honcho") James Cashiola challenges ISPs to use the Internet, not just provide it.

by Alex Goldman
Associate Editor, ISP-Planet
[July 25, 2000]

In a recent article ("Executing a Total Internet Strategy"), James Cashiola challenged ISPs to use the Internet. He wrote, "To stave off increasing competition from other players in the converged space, providers need to focus on customer care and service. Not surprisingly, the Internet will provide ISPs with both the new business model and the tools they need to prevail."

Sounded interesting, so I got in touch.

Cashiola advocates web-based everything: web-based load-balancing, web-based CRM, web-based email that is accessable on the road, and web-based billing. Of course, his company provides or enables many of these products.

Get paid at Internet speed
Cashiola's Simplified "equips service providers with an Internet business model to deliver services and billing over the Internet." This is browser-based, not IP-based.

For billing purposes, he is implementing a nationwide network, "pre-deploying our software in cities. We use two modules for error correction," he said, adding that a local presence with a private backhaul should improve connection speeds over the billing network.

This means that local presence may require no more than a single rack and a computer.

The ASP model
When it looks to the ISP market, Simplified is focusing on transaction-based billing, the value-added stuff that you charge for according to use rather than by monthly subscription.

He hopes to provide a transparent back office, so users can access sales, help, and billing directly. The software would allow a Customer Service Representative (CSP) to view the same screen as the user while talking on the phone, or perhaps talking through Voice over IP (VoIP).

It would also enable an internal bandwidth market. If a SOHO user wanted to upgrade temporarily for a teleconference or telecast, Simplified might provide the billing software.

The software is not cheap. Most small ISPs will only be able to access it through cooperatives or ISP aggregators like Telares (see our article, "Virtual Massiveness"). Prices vary, however.

Cable and the telcos
Cashiola used to work at a long-distance reseller. "I was reselling Sprint. They hated me. Their attitude was that they'd take our money and nothing else. It was ridiculous." Big carriers tried to squash the resellers when they could have established fruitful, revenue-earning, long-term relationships.

He was more impressed by the cable TV model, where revenue was shared between content creators and the networks — and although there are numerous flaws in that model, too, we won't discuss those flaws here. But this was a successful long-term relationship.

When he looks to new markets, he looks to his youngest employees. "I've got programmers working for me who are under 25, and they sign no long-term phone or Internet contracts. They pay ISPs in six-month blocks, and they buy pre-paid cards for long-distance service."

The cable analogy? "I think we'll be seeing a premium, bannerless Internet service, like HBO is TV without ads." But although there's a market for it, he does not see the technology — yet. Banner-stripping software sold on the HBO model might be good for ISPs as cable was for cable companies. "Cable companies didn't buy anything," enthuses Cashiola. They had no costs. Cable companies gave up space on their systems and acquired fee-paying subscribers.

Access
Today, even if you want to, it's nearly impossible to buy a computer without ISP service included. Simplified wants to set up a self-registration service for cable modems. This would allow the consumer to retain an email address across providers, and would even allow the consumer to change access technology. This one is just being built, so stay tuned.

Competitors
Billing software competitors include Keenan Systems, Portal, Inovaware (which makes PRISM), and Solect (which is now owned by AMDOCS).

—End