Survey: Smaller ISPs Fighting to Remain Independent
Page 1 of 1
A new survey conducted by Bay area consulting firm Executive Strategies found that small- and medium-sized ISPs are fighting to remain independent in spite of increasing competition.
The survey of over 600 ISPs found three-fourths of the respondents said they feel they have enough resources to compete. When asked if they expect to be in business 3 years from now, 85% said yes. And by a margin of 3 to 1, those polled said that although they think that consolidation within the industry will continue, they expect to remain unaffected.
To expand their business, 75% of these ISPs indicated their top priority was advertising and development of new channels, and 50% of the respondents will continue to push for new products and services.
Geographic expansion was the third most sited growth strategy; 24% of the respondents said they are planning to expand both regionally and even internationally. This places small- and mid-sized ISPs in competition not only with the national firms, but with smaller peers as well.
Strategies needed to remain competitive included "flexible pricing" (33%), investment in new technology (28%), and a continuation in service improvements (24%). Translated, these figures seem to imply that smaller ISPs want to remain competitive in pricing despite increasing technology and service costs.
In some cases as often as once a quarter, about 9 out of 10 ISPs surveyed said they have been approached to sell their company. If the price were right, 77% said they would sell.