[AusNOG] Buying Group for small ISPs

[Skeeve Stevens]

Hi Barry,

As someone who specialises in building small-isps for people, if you are
trying to compete on price directly... close up show and go grow Kale.

You need to have a value-add of some sort... something that gives people a
reason to not only stay with you, but is willing to pay you a higher amount
than they otherwise would.

There are many ways to accomplish this...

Don't expect buying groups to really help you... numbers, even into the
thousands make very little difference on base costs, and the price of
transit is so low now that it shouldn't be a basis of cost.

The biggest pricing killer for most ISPs is that of AGVC/backhaul because
that is where the wholesalers can still make some money... until someone
undercuts that market.  Also, new hardware to handle new NBN style speeds
is also causing a lot of cost these days.

Again... differentiate your business... selling tails *only* is the fastest
way into the the red... and don't think your assets are worth anything if
you try to sell out either.  I've seen grown men cry when told what people
will pay for the passion project they've spent 10 years building.

Just being direct and honest here... not meant to offend.




...Skeeve

*Skeeve Stevens - *eintellego Networks Pty Ltd
skeeve at eintellegonetworks.com ; www.eintellegonetworks.com

Phone: 1300 239 038; Cell +61 (0)414 753 383 ; skype://skeeve

facebook.com/eintellegonetworks ;  <http://twitter.com/networkceoau>
linkedin.com/in/skeeve

twitter.com/theispguy ; blog: www.theispguy.com


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On Fri, Jun 20, 2014 at 3:32 PM, Spinfx <spinfx64 at gmail.com> wrote:

> Hi All,
>
>
> As a small country ISP, we only operate and sell into our local region and
> although our support service has been described as excellent,  we are still
> losing clients  to the BIG ISPs with thier low price deals. Clients leaving
> us, explain thier reluctance to leave us and and at the end of the day,
> say its because of the better pricing. I can imagine its the same for alot
> of small ISP's out there.
>
> Does anyone have any information on any  Buying groups for small  to
> medium ISPs ?
>
> or is interested in forming one ?
>
>
> We have access to all the services, we just need the economies of scale to
> help us and
> being in a buying group is the only way that I can think of, that will
> allow us to get that better pricing and compete.
> Not to mention that we can help each other in terms of technical
> assistance and product knowledge that we can share or assist in any major
> problems faced.
>
>
>
>
> Barry the small ISP Man.
>
> _______________________________________________
> AusNOG mailing list
> AusNOG at lists.ausnog.net
> http://lists.ausnog.net/mailman/listinfo/ausnog
>
>
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