Sunday, June 14. 2009What Is A "No Frills" ISP?John Linton ....or, if it's easier, what is "frills".....when stupid people use such a phrase(s) when describing an ISP? I have seen it applied to Exetel over the years and I still have no idea what it means but at a meeting earlier last week it was casually used by one of Exetel's larger suppliers and I was so surprised at hearing it I asked them why they used that appellation? They couldn't tell me - although I pressed for a reason(s) so I got mildly annoyed (actuality I got really p***ed off) because, as far as I can see the phrase itself is pretty silly and applying it to something and then not being able to say why you have 'randomly' selected some meaningless and inapposite words makes the user even sillier - and I think I may have made that point. I don't know what it means or why its employed in the communications industry generally or in the ISP sector particularly. I assume it's intended pejoratively but, again, I can't see how it is 'justified'. However to hear an Exetel supplier use it caused me to re-assess why he was using it about Exetel (even though he said he didn't know). Over the five plus years of Exetel's existence we have continually changed almost every aspect of what and how we provide services and, as far as I can see, when I look at the offering of other ISPs, Exetel provides more of everything than ANY other Australian ISP and provides all of the "more" at a lower cost than any other ISP. So maybe that's the issue - we don't charge the ludicrously inflated prices of "frills" ISPs so by their definition we must offer less than they do? But we don't charge less because we have "stripped any "frills" out of the offering" (as far as I can see, and I look fairly regularly, we offer much more than anyone else) but because our five year dedication to providing services via inbuilt efficiencies doesn't burden us with the ludicrous overheads of the "frills included" ISPs (what ever a "frill" is but presumably there must be something otherwise their couldn't be a "no frills" description). So the lowest price (Exetel's) is not achieved by reducing anything but actually by adding a lot of things with the money saved by painstaking attention to AIMING at efficiency in every tiny aspect of running a service business and then STILL being able to continue to offer the lowest prices AND more value than any other provider. However that has always been the case - except for the "why don't we spend hours with you on the phone teaching you how to put your user name into your modem or configure your email for the millionth time" "frill" - so is that what is meant by being a "no frills ISP"? I really can't think of anything else it might mean. So.....it's easy enough to do....offer "support" that is prepared to "help" customers with anything that can be even mildly ascribed to providing an internet service. We can put such a help function in place if we ever decide it would be useful - which for five years we haven't. I doubt that the many, many tens of thousands of current customers who have used Exetel services for more than a year either want such a "frill" or want to pay for it . But for some new demographic customer it would be simple enough to do. I did some costings on what it would cost to provide 24 x 7 x 365 to the sort of customer whose attitude is: "let's have a chat for as long as it takes because my sheer laziness and total incompetence mean that it's much easier for me to sit on my fat backside and call you to fix something a mentally retarded guppy would be able to do in their sleep" as being their definition of "customer support". The cost to us would be around $7.00 an hour to provide "support" to people who have a service that works at the rated speed but want to waste someone's time untangling aspects of their use that they should really be able to do for themselves but choose not to. So a consideration in 'releasing' new plans in July will be to include either a separately charged function or build it in to the price of the plans themselves. If it was separately charged then we would create a 'buy in advance amount of support' with the ability to top it up if the customer ever wanted it - perhaps include an hour "free" in the initial sign up and provide a top up facility in the user facilities at say - $10.00 an hour. If it was built in - meaning that the reasonable customers paid for hand holding of nonessential issues for the unreasonable customers - it would add around $2.00 a month to every new plan. Either way - it can be done. I guess the other issue is not to assume that not all customers are reasonably sensible and understand that P2P downloads should be set for an incredibly generous off peak where they cost nothing against download allowances and don't place strains on various sectors of the network. It always seemed to me that anyone who had used the internet for a few nanoseconds would grasp that pretty basic situation but I have been consistently wrong. So this means we need to remove the NetEnforcer from the current network and replace the 'controls' that provides with raw bandwidth. I haven't worked out the cost of doing this yet but will complete the calculations, and get them double checked, over the next 72 hours. If my initial calculations are remotely correct then it would cost, at today's IP and back haul prices, approximately $A1.80 per customer per month to provide P2P users in peak times with no P2P restraints. Of course the issue is that 80% of our current customers (a very conservative figure as I think it's closer to 95%) don't use P2P at all or not in peak times so, once again, there is a $A2.00 per month cost for all customers so that a very small minority can indulge themselves unnecessarily - though they certainly wouldn't see it that way. If you follow this probably poorly set out 'logic' it seems that to eliminate the pejorative misuse of the meaningless words "no frills" all that is required is to increase broad band plan prices by $A5.00 and remove: 60 gb of peak for free 12 hours each day 100 free VoIp calls 30 free SMS 10 free Faxes 30% to 50% more peak quota than most other ISPs Free fixed IP Free DID and ......whatever else we were thinking of providing in the future......but then what the f*** would be the point of being in business? Trackbacks
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From my reading of various fora, when referring to ISP's, the phrase "no frills" means:
1) "an ISP who doesn't fix my problem in the next five nanoseconds, even if it is caused by water in the cable pit at 2am on a Sunday morning" 2) "an ISP who doesn't provide me with 100% of the theoretical maximum speed of my connection, even though I live 10 kilometres from the exchange" and many other similar whinges. In my opinion, many users who state Exetel are "no-frills" simply don't understand the high level of automation built into your processes, and expect that there are some human beings sitting around just waiting for the user to call with the least question. But then, as a business consultant once told me, "80% of your C class customers want A class service". Comment (1)
I suppose the no-frills comes from you not pushing up your prices with unessential things. You dont promote yourself on TV every second ad break with some idiot screaming at you about getting $1000 call credit for $10 (Ok i exaggerate a little... but its anoying).
I have never heard of exetel doing cold calling to people trying to force feed your offerings to everyone ... (Adding to your budget) So what i am saying is that with "frills" its mainly your method of marketing that is easy to swallow and lacks the FTSP-BS (Fast talk, small print - [you get the BS part]) This is at least my perception of it, but i dont really think no-frills is a good term to use. How about "no-BS" ISP? Comment (1)
No Frills is a term I associate with the Franklin's brand (budget priced).
See here: http://www.franklins.com.au/home/inner.asp?mainID=6&pageID=50 The quality isn't expected to be the same as, for example "Coca Cola" compared to "No Frills Cola". Similar products, different taste and opinions on what they define as 'product quality'. No Frills ISP: - No / Low Support - Long Phone Hold Times - Long Fault Times - Staff that are rude / don't care. - Poor speeds due to congested networks. - Large quotas, small prices. - No 'Free' content / addins. - Generally, no specials, as the everyday prices are the special. Take all of Exetel, and make every aspect "Low Quality", and you might match the No Frills definition. I'd be offended at such a term being applied to my product, as I would take it to mean 'low priced due to inferior quality'. Comment (1)
i think the term no frills may have come about from the old supermarket Franklins
it was their logo on everything they had produced and was their budget line, much like home brand is for woolies but thats slowly disappearing too i think but i think it refers to it being a budget offering, that being said its a heck of a product for a budget service Comment (1)
I use to see Exetel as a "no frills " ISP and would be more selective on who I would recommend Exetel to. Unfortunately there are so many people who are so computer challenged that I just didn't want the flack when they found they could not talk to someone who would hold their hand in every decision required to get online or to set up a router. To tell you the truth I still don't know how much support you now get, though on the occasions I have required support, which is rare as there is more than enough information in the forums somewhere, it has always been addressed quickly.
There are alot of frills to Exetel now and most people would see it and think there must be a catch. Who gives away so much for so little cost. Exetel has matured to a quality choice that really is hard to find equivalent alternatives to. This is probably why the churn rate is so low in comparison to other ISP's. Comment (1)
Its interesting, when other people "point the finger" at you.
I always remember a preacher telling me years ago..... ".. when somebody points their finger at you... notice that their other 3 fingers are pointing right back at them!" They are usually telling you more about themselves, than the issue they are actually talking about! H. Comment (1)
As a firm believer in "user pays"; how about offering support via a 1900 number?
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This idea I like. Want your hand held? Pay for it. The amount of support needed to setup an internet connection is so low its not funny. The amount of support wanted however apparently is ridiculous. But only about as ridiculous as those who do not read complaining about something they didn't read.
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I can see no empirical evidence of Exetel offering a sub-par customer support experience. Indeed, when I looked at the data from the 2008 Whirlpool survey, Exetel finished a statistical dead heat with the industry average, and you trounced many of your larger competitors.
http://thebernoullitrial.wordpress.com/2009/04/15/which-australian-isp-has-the-best-customer-service/ I'm with another ISP at the moment, but the simple fact is that Exetel offer the best value broadband in Australia. If/when I churn and/or go wireless it will be to Exetel. You are certainly on my list of recommended ISPs when people ask for my opinion (depends on their individual requirements/circumstances) Comment (1)
John,
I think that being called a no-frills isp is not denigrating Exetel , but only emphasizing the lower cost for the same product. As I’m sure many consumers at the supermarket would already know - if you are smart you can buy the same product for 30% less if you pick the right no-frills brand. Supermarkets are very smart with marketing and push the no-frills lines with gusto -- why -- they make a larger profit. Not all no frills products are the same as the expensive brand name ones, but those smart shoppers either try the NF brand once and if it doesn’t match the brand name they wont buy it again, or they will be recommended to try a nofrills brand by a friend or local agent. NO-FRILLS products are in many cases made by the same companies that make the expensive brand name product. this also applies to broadband -- They generally all run over the same basic Telstra infrastructure. In today’s terminology I would wear the badge of no-frills happily -- I’m guessing that no-frills brands are now starting to outsell their more expensive brand names and as times become more difficult you may find that - Exetel being named as a no-frills supplier may well be a benefit. For people looking to save a dollar for the same product, no-frills name is a benefit - you’ve got to remember we don’t all live on the North Shore.. Comment (1)
Yes, I guess frills are pretty bits of lace that have more appearance than substance. A bit like a peacocks tail, they are all about show.
In that sense, Exetel does seem to be "no frills" as its emphasis is functionality and value, not sparkle and glitz. A compliment then? Comment (1)
Maybe the Aldi of ISP's is more accurate. Good quality at a cheaper price.
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Don't they mean:
You don't get a guy out to your house or Installation CD to "Install your internet". My Mum just changed from Optus to Telstra and they sent out a guy. :S You don't get a company that spends truck loads on stupid ads, misleading segments on "The Morning Show". None of the money going to the huge machine that is the "company". Some people see the word "frills" as having a positive connotation but I am sure that in this economic climate, an increasing number see "frills" as unnecessary waste. I woudn't worry about it too much if I were you. Comment (1)
John, I really loved this post.
Regarding paid support, its only a logical step. Doing the repair jobs I do, I can think of plenty of example customers who unnecessarily occupy my time - and in turn, get charged for it. Most are quite happy with that because I'm very reasonable with my pricings. The only problem customers are those who want something for nothing, but I'm no charity. Re: NetEnforcer, as you say, the majority of customers it does not impact. Increasing the costs for all seems senseless. However I'm concerned it isn't always an impact on just P2P, but legitimate services. In peak times YouTube seems to be a target. Minorities are often quite vocal... but naturally your target customer is your own decision to make - something more should understand Comment (1)
A comment I make that seems to p*** off some people is that "Exetel is not a democracy"
Personally my view is that the NetEorcer has been a 'life saver'. However, I think it's time to move on to Phase 3 and get rid of that concept which is the plan for the next six months. Will it work out......I don't know....but then I have never known so many of the results before we have implmented them....we just use the best of our abilities to deliver the best possible results for the overwhelming majority of our customers. Comments (4)
"Free fixed IP" - Make it optional, and I'd churn tomorrow.
Why? File hosts limiting downloads per IP. Nowhere do such places ever say "per person" or "per computer", it's per IP address, so it's not like a modem reset circumvents their ToS. Comments (2)
You can change your IP 30 times a year at no charge.
It takes a few seconds per change. Comments (4)
But I used to do it 30 times...a day.
And people wonder why so many topics asking whether they could request a dynamic IP are posted on whirlpool. Static IPs are a negative for the http-leecher crowd Not that the business of such a (probably small) demographic would be very profitable anyway. Althought I thought that given ISPs were based around "profit off what they're not using" models, that dynamic IPs would be the norm for cost saving. Then again, people hardly ever turn off their modem. Comments (2)
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