nanog mailing list archives

Re: 10g residential CPE


From: Mark Tinka <mark.tinka () seacom com>
Date: Sun, 27 Dec 2020 12:38:30 +0200



On 12/26/20 20:48, Darin Steffl wrote:

Aaron,

One simple question. Why on earth would you offer free internet service? How and why? Your site show 1 Gig symmetrical for free when you should be a minimum of $65 per month to be competitive.

<conjecturbation>

For me, looks like a loss-leader to reel customers in, perhaps with some limitations, no guarantees, time/term restrictions, no CPE, no support, e.t.c., that make a "smooth" upgrade to 2Gbps or 3Gbps more sensible.

My theory would be that getting customers on to the platform is the hardest step. Once they're on, pivoting them isn't difficult, particularly if you nabbed them from a competitor that was charging them some $$ for 10Mbps.

Think about it, they don't offer a "Multi-Gigabit Wireless Router" with the 1Gbps service. Chances are the customers who choose this package either have a crappy device, or will likely buy a crappy device on their own. They'd never trouble the 1Gbps product, probably call KC Fiber for to complain about not getting 1Gbps, upon which KC Fiber recommend their own CPE, a more guaranteed package, e.t.c., and in comes the 2Gbps or higher, revenue-generating service.

One the network side, it's just the same port, different (cheap) optic. A cheap port in use for free is better than an unused port, if the switch and fibre are already installed, and at less than 60% take-up.

It's creative, I like it!

</conjecturbation>

Mark.


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