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Friday, 17 June 2005 |
Our colleague, Tim Sanders with the Final Mile, has provided an excellent overview, via ISP Planet, of how WISPs should seriously consider offering tiered pricing over a fixed rate. Tim has been involved with the WISP industry for years and is widely considered an expert authority. Tim works with both new and established WISPs on various consulting projects. A snippet from his article follows:
Strategy
For most wireless Internet service providers (WISPs), pricing is a thorny
issue at best—with providers torn between the proverbial rock of
higher costs and the ever present hard place of market competition.
Most of these (usually small) firms need to charge more for their service
than the competition does. The difference between the cost of a DSL or
cable modem and the cost of a wireless radio alone makes the up front
provisioning cost higher. The upshot is that the average provider lives
in fear of losing customers to competition, while constantly struggling
to charge enough to survive.
But WISPs need not fear if they can provide value to the customer and
find the right price point. In order to do so, they need to examine their
costs.
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