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<div class="moz-cite-prefix">On 17/09/2015 3:25 PM, Paul Wilkins
wrote:<br>
</div>
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cite="mid:CAMmROT+PbAW6A5=c6OyqYLTSXYRBmXAMSLYaA=752Z2E8H10AQ@mail.gmail.com"
type="cite">
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<div>
<div>
<div>
<div style="margin-left:40px">have a think about how local
pizza<br>
shops manage to survive in competition to national pizza<br>
chains/franchises, who will have lower costs. They're
all<br>
fundamentally selling pizza, so how do local pizza shops
get away with<br>
not only selling the same thing, but probably make a
much bigger<br>
profit when doing it?<br>
</div>
<br>
</div>
Depends if you want something that someone has repackaged
from an industrial toxic spill, or a pizza.<br>
<br>
</div>
ISP's otoh largely can't differentiate their product.<br>
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</blockquote>
Seriously?<br>
iiNet/Westnet dined out on better customer care<br>
Internode had a rep for excellent network, a premium service they
could charge a premium price for.<br>
DoDo has a different niche.<br>
Some offer FetchTV over their network. A local/regional player could
have a dropin-centre where customers can bring in their devices for
cleaning/debugging/upgrading. Some have more peering than others.<br>
Internode is (was?) the only major IPv6/IPv4 dual-stack service
around - which is ridiculous, since anyone can supply IPv6 through
Telstra Wholesale ADSL.<br>
<br>
Differentiate yourself - turn on IPv6 for your customers, then shout
it from the rooftops.<br>
<br>
<br>
<br>
<br>
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cite="mid:CAMmROT+PbAW6A5=c6OyqYLTSXYRBmXAMSLYaA=752Z2E8H10AQ@mail.gmail.com"
type="cite">
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Paul Wilkins<br>
</div>
<div class="gmail_extra"><br>
<div class="gmail_quote">On 17 September 2015 at 13:07, Mark
Smith <span dir="ltr"><<a moz-do-not-send="true"
href="mailto:markzzzsmith@gmail.com" target="_blank">markzzzsmith@gmail.com</a>></span>
wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0
.8ex;border-left:1px #ccc solid;padding-left:1ex">
<div class="HOEnZb">
<div class="h5">On 17 September 2015 at 09:57, Noel Butler
<<a moz-do-not-send="true"
href="mailto:noel.butler@ausics.net">noel.butler@ausics.net</a>>
wrote:<br>
> On 17/09/2015 09:37, Paul Brooks wrote:<br>
><br>
> On 17/09/2015 7:56 AM, Skeeve Stevens wrote:<br>
><br>
> I am saying that while the CVC should be like
$2.... if they aggregated<br>
> their PoI's, you'd need a lot less because it would
scale much much more and<br>
> it would actually costs less.<br>
><br>
><br>
> Methinks you're confusing topology with charging
model. If you negotiated<br>
> your wholesale backhaul provider to just add up all
the traffic on all the<br>
> POI ports and charge you for the aggregate, rather
than per physical port,<br>
> it wouldn't matter how many actual POIs there were.<br>
><br>
> This whole mess also seems to hang on two
assumptions:<br>
> 1) every ISP needs to service the whole national
footprint<br>
> 2) every ISP needs to charge the same uniform
retail price all over the<br>
> footprint.<br>
><br>
> Are either of these true?<br>
><br>
><br>
><br>
> Of course they are - unless you want to be blasted
into extinction<br>
><br>
> 1 - a necessity to compete/survive<br>
><br>
> 2 - a necessity to compete/survive<br>
><br>
> I'm truly amazed someone on THIS list assuming they
have any RSP experience<br>
> even asks such a question<br>
><br>
><br>
<br>
</div>
</div>
If small players think they can out capitalise and out scale
of<br>
economise much larger players, then they're never going to
win.<br>
<br>
As a smaller RSP, If your only competitive advantage is your
lower<br>
price, then you're vulnerable to your competitors lowering
their<br>
prices. That is an easy and low effort decision by your
competitors,<br>
and if they have larger margins to do it, because their
scales of<br>
economy are larger and as they get larger volume discounts
from their<br>
suppliers, they have much more room to lower their costs.<br>
<br>
It is a race to the bottom, and since you're starting much
closer to<br>
the bottom than your competitors are, you'll lose (they will
probably<br>
get in trouble for using their market power to crush you,
however you<br>
may suffer a fatal blow before they get taken to court, the
court case<br>
occurs etc., etc.)<br>
<br>
You're far better off trying to find something that your
competitors<br>
can't or won't do, creating a barrier to entry. Then you
have a unique<br>
advantage (i.e., a natural monopoly), which means customers
must come<br>
to you to get it because they can't or can't easily get it
from<br>
anybody else, and you can charge what your customers are
willing to<br>
pay for your unique value, rather the same or a few
percentage points<br>
lower than your competitors' prices.<br>
<br>
If you don't think this works, have a think about how local
pizza<br>
shops manage to survive in competition to national pizza<br>
chains/franchises, who will have lower costs. They're all<br>
fundamentally selling pizza, so how do local pizza shops get
away with<br>
not only selling the same thing, but probably make a much
bigger<br>
profit when doing it?<br>
<div class="HOEnZb">
<div class="h5"><br>
<br>
<br>
<br>
><br>
><br>
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