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d33

@pacbell.net

Introductory Rates and Adjustment Terms

I am having an email dialog with sales. I am aware of the introductory rate (from the website), but when I ask about what the rate will adjust to, the answer is that there will be a 30 day notice. So my question is how can I sign up for service where I know what my rate will be, and how long it will remain at that? If there are lock in contract terms available, then what are they? We are still early in our sales dialog, so far sales have not presented any options for knowing rates beyond the introductory, or for contract terms with fixed rates, if they are available. What options are there for a customer who wants to know what the monthly charges will be and for how long? Can the sales person say what is "typical" for a promotional rate, for example, they are currently adjusting after 6 months, and the adjustment is currently from 35$ to 50$?


DaneJasper
Sonic.Net
Premium,VIP
join:2001-08-20
Santa Rosa, CA
kudos:9
AT&T made a shift away from 12 month assured pricing a little while ago, so pretty much all ISPs now must have pricing which can change on 30 days notice.

In other words, we used to buy AT&T copper DSL loops for a cost which was fixed for 12 months, but now AT&T can change our costs on 30 days notice. As a result, ISPs are generally passing this term along to customers.

The reality is that you need to buy based upon the information you have about the service provider, service quality, features, etc. Then, over time, you need to evaluate whether or not it continues to be competitive.

Our challenge as an ISP is to continue to add value, quality support, etc, so that our customers make the value judgment and continue to stay with us.

To give a concrete example, we recently began giving away free domain names and free website hosting to all customers. This adds some value ($8-$10 for the domain registration, and perhaps $5-$10 monthly for the website hosting), that makes our broadband product a better value.

We are working now on a remote backup service, and we'll be providing some remote storage free for all customers as well.

The process of remaining competitive and adding value is a constant one for us.

-Dane


JohnInSJ
Premium
join:2003-09-22
Aptos, CA
said by DaneJasper:

AT&T made a shift away from 12 month assured pricing a little while ago, so pretty much all ISPs now must have pricing which can change on 30 days notice.
Did they grandfather any of the old loops they sold you way back when with fixed costs?


DaneJasper
Sonic.Net
Premium,VIP
join:2001-08-20
Santa Rosa, CA
kudos:9
Yes, until the end of any term we had on those specific loops, then our costs are at their whim.

-Dane