Article View: capdist.misc
Article #684Re: Do Albany Area ISPs Compete...or Conspire?
From: Barry B Floyd
Date: Thu, 15 Aug 1996 00:00
Date: Thu, 15 Aug 1996 00:00
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3824 bytes
Fortunately, we have the right to peaceably (sp?) gather, and freely speak. Anyone is free to create mailing list to exchange information, between 'presidents' or 'techies' or both, public or private. Certainly, Daniel, you aren't suggesting that such communication be monitored or otherwise restricted. Do you? If you believe that there is 'colusion' then your only reasonable course of action would be to gather evidence of 'colusion'. Pointing out the potential for 'colusion' is not sufficient. You might gather a comprehensive list of ISP's serving the region (recently posted) and monitor aspects of their businesses that are regularly made public. For example, you might track: - un-metered 'Net access pricing - metered 'Net access pricing - amount of disk space provided - amount of connect time included in basic package deals - the type of backbone technology used - the type of information and services provided - the points of presence (exchanges) provided - etc. Chart the parameters on a quarterly basis (back to the inception of the ISP market) and draw your own conclusions. My guess is you might be able to prove the ISP's are all trying to make more money/profits (no suprise) and are doing so by trying to attract more clients. Clients are attracted to better/broader service and lower prices. Within the past few months, several ISPs have lowered prices and expanded service. Some have started dropping 'setup fees' (few still charge setup fees). Some, in fact, offer the 1st month of service free (or similar trial offers). As previously pointed out, the market is not closed to outside (non-regional) competition. To the contrary, it is becoming increasingly competitive, with AT&T, NYNEX, cable operators, satelite operators, and 'private' networks (e.g. schools and employers)_ offering 'Net access. In addition, there are 'free' e-mail boxes and WWWeb disk space available to almost anyone with a modem. Charts and graphs of 'evidence' might point to a convergence, but most likely in favor of the consumer. The investment in hardware and salaries required to compete in the market can only be paid for through volume, not nickel and diming a small number of clients. A critical number of clients who regularly use the service, and always renew their contracts, may generate enough income to pay expenses. However, some new technology, or un-expectedly low (billable) usage, or a few too many closed accounts, etc. seem to always require more income. Raising rates is a method resulting in diminishing returns. Attracting new clients and/or providing new (billable) services seems to work best. The may be a 'shake-out' in the market, with those retaining too few clients relative to their expenses being shook out. These comments may be applicable to the ISP market, I don't know. They do apply to software consulting, product development, etc. 2 cents worth -- +--------------------------------------------------------------------+ | Barry B. Floyd \\\ floydb1@rpi.edu | | RPI Alum. '84'87'88 \\\http://www.geocities.com/SiliconValley/7331 | +--------------------------------------------------------------------+
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 110b47,4662656a8b9f04dd X-Google-Attributes: gid110b47,public From: floydb1@lib101.its.rpi.edu (Barry B Floyd) Subject: Re: Do Albany Area ISPs Compete...or Conspire? Date: 1996/08/15 Message-ID: <4v026m$5j9@lib101.its.rpi.edu> X-Deja-AN: 174604409 distribution: na references: <3211dd28.39089026@news.albany.net> <4utf7c$10t@lori.albany.net> <321334f1.80170626@news.albany.net> organization: Rensselaer Polytechnic Institute, Troy, NY. newsgroups: capdist.misc