[AusNOG] Buying Group for small ISPs

[Joseph Goldman]

Hi Barry,

  The 'Buying Groups' essentially exist as Wholesale Aggregators. 
Depending on your network infrastructure depends on what pricing you may 
get, but a lot of the VISP providers are probably a good example of 
aggregators for small ISP's. Working for one myself, we have clients 
that are as low as only 20 tails, and some in the thousands.

  As for competing with the big guys - Skeeve is 100% correct. The 
successful VISPs of ours don't succeed through price matching, they 
succeed in value-add. They do concentrate on a local market, they do 
concentrate on specific client type (non-downloaders, mum and dad, 
grandma grandpa types) who just want basic, working service, without 
dealing with hour long helpdesk wait for someone who barely ever helps 
them. They have a face, and a place to go see when they are upset.

  The big guys also get to spend their money up front, and recover the 
costs slowly, where-as even mid-tier ISP's cant do that and have to rely 
on higher operating costs, rather than having capitol upfront for 
infrastructure etc.

  On this note - I wish NBNCo could have delivered at least per-state, 
and options for national delivery rather than the ridiculous costs of 
CVC + your own backhaul to 120~ POI's (to be national provider). 
Basically pigeon-holed the wholesale market back to the big guys.

</opinion>

On 20/06/14 15:32, Spinfx 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.
>
>
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