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RARPSL

join:1999-12-08
Suffern, NY
reply to jcremin

Re: They're not asking the right question.

said by jcremin:

Exactly. My ISP has a few speed tiers available, but 99% of customers could care less about a faster speed if a slower one is available. I'd be willing to bet that a lot of these areas have faster speeds available and nobody cares about them.

Or want them but are not willing to buy them due to their being over priced (or having an excessive installation fee attached). As an example, my ISP Cablevision/OptOnline has 3 tiers - 15/2, 30/5, and 101/15 (for $40, $55, and $99). They will sell you either of the first 2 for a $35 install fee. To get the third tier, there is an extra $300 nonrefundable fee for them to decide if they can supply it to you and do the setup at the head end. This $300 fee acts more as an disincentive to ordering it than a real cost fee to handle the actual work to install.

I have also seen cases where the cost of higher tiers are in the $150-200 range for speeds lower than other ISPs offer at under $100. Thus the tier is overpriced.

jcremin

join:2009-12-22
Siren, WI
kudos:2

said by RARPSL:

Or want them but are not willing to buy them due to their being over priced (or having an excessive installation fee attached).

Not always true. A local DSL provider near me has the following packages available: 768k for $30/mo, 1.5m for $40/mo, and 10m for $50/mo. As a competing ISP, I have a fairly good handle on what percentages of people have which packages. And as a computer repair tech in the area, I am able to do some non-biased speed tests and ask questions without being a salesman.

While I don't have hard numbers from doing a big study, I can offer my "estimates" which are close enough for the sake of argument. About 85% have the 768k based on the fact that it is cheapest. Many realize they can get twice the speed for only a little bit more, but just don't care. About 14% have the 1.5 meg service because they know that it helps for streaming videos and saw that it was twice the speed for only a little bit more. Most of them realize that they can get many times the speed for only a little bit more, but just don't care. They aren't willing to spend any more and don't really have any need for it. 1% are on the 10 meg package because of one of two reasons: 1) they are a very large business and need the bandwidth, and 2) they just wanted the fastest they could get and didn't care about price, even though they didn't need it.

You have to admit, that based on the starting price of $30 for 768k, the other two plans are pretty reasonably priced.

said by RARPSL:

As an example, my ISP Cablevision/OptOnline has 3 tiers - 15/2, 30/5, and 101/15 (for $40, $55, and $99). They will sell you either of the first 2 for a $35 install fee. To get the third tier, there is an extra $300 nonrefundable fee for them to decide if they can supply it to you and do the setup at the head end. This $300 fee acts more as an disincentive to ordering it than a real cost fee to handle the actual work to install.

And you are certain that neither the equipment or technologies used for the faster service add any additional hardware or labor costs?