Impact of Free AT&T Internet Access on the Market

jandrieu@corp.gnp.com ((jandrieu@corp.gnp.com))
Fri, 1 Mar 1996 11:44:22 -0800


<i>>From: Alan Taetle <ataetle@mindspring.com></i>
<i>>As you all know, AT&T made their sixth announcement about entering into the</i>
<i>>dial-up business. Between this and David Kline's article, it appears that</i>
<i>>all ISPs will be six feet under in no time ;->.</i>
<i>></i>
<i>>Frankly I am beyond skeptical at AT&T's ability to deliver a quality</i>
<i>>service, particularly from a customer support perspective. They are</i>
<i>>marvelous at marketing however.</i>

Alan,

You're in a tough spot as a small regional ISP, but there is still room to
maneuver. AT&T and the others will take some time to actually deploy and
sustain a quality service. I know because we are working with some of these
companies to help them compete in the ISP business.

You are absolutely right about the marketing. All of these groups will have
incredibly marketing $$ and salesmen to cherry pick your best customers,
both consumers and businesses. They will also pick up many of your most
difficult customers.

You're also right about the customer support problem. That will be their
biggest battle. It takes time and talent to get a team together that can
handle any of the literally thousands or millions of questions an ISP
customer might call and ask. "I can't get this Java Applet to work on my
Macintosh" "I'm having problems with RealAudio. Do I need a sound card?"
"I just downloaded a VRML browser, but I can't get it to work. What's wrong?"

Take advantage of your position with your customers and your expertise with
the Net. AT&T will never be an intimate partner for any business or
individual. hOWEVER, You can build those relationships and customer loyalty
and IMHO that's your best bet for surviving the Telcom onslaught.

Remember, the marketing dollars AT&T and others will spend a going to
dramatically increase the size of the consumer base for all Internet
services. You should find an increase in business: they've sold the
Internet, now you finish by selling your particular brand of customer
intimacy and service.

Immediately focus your marketing messages on quality, customer service, and
intimacy. Also leverage your current customer base as references and
recommendations. Few people will openly trust the big corporate machines of
the Telcos, but if their neighbor says Mindspring has done right by them,
that's worth more advertising than anyone can pay for. Customer intimacy
will be the best differentiator for you against the Telcos.

That's my input. You've got an incredible challenge ahead, but I think
there is still a lot of room left for an efficient, customer-driven regional
ISP.

My two cents.

-j

p.s.
I'd also check out the two marketing books by Geoffry Moore, _Crossing the
Chasm_ and _Inside the Tornado_. The ISP business is crossing into the
tornado. Moore offers some insightful perspectives that may help you in your
business.
<pre>
<pre>

--
Joe Andrieu              The GNP WorkServer--The Modular Sun SPARC
GNP Computers          Platform for Central Office High Availability
Director of Marketing     606 E. Huntington Dr. Monrovia CA 91016
jandrieu@gnp.com--&lt;a href="<a href="http://www.gnp.com--818.305.8484--818.305.8498FAX">http://www.gnp.com--818.305.8484--818.305.8498FAX</a>"&gt;http://www.gnp.com--818.305.8484--818.305.8498FAX&lt;/a&gt;

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