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5 Simple Yet Powerful Techniques for ISPs to Maximize Revenue “and with negligible CapEx rise!”

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5 Simple Yet Powerful Techniques for ISPs to Maximize Revenue “and with negligible CapEx rise!”

An ISP primarily provides internet access as a service to its customers; they are de facto gatekeepers of the internet.

As a business, ISPs primary focus is to provide a consistent and high quality service to its customers as well as delivering a good return on investment for its shareholders.

An interesting observation is that, ISPs initially did not have any business model upon which they could base their services, therefore they borrowed freely from the business models (and services) of existing communication service providers (Telcos). As a result, and perhaps because they also recruited heavily from these companies, ISPs ended up with a Telco-industry biased look and feel to initial their service offerings.

A similar pattern of talent and business model migration was also observed in the transition from telegraphy to telephony services. In any case today’s ISPs, having largely gone past the transition phase, and are now faced with the daunting task of defining their own future, and relevance, to a more sophisticated communication technology user base than at any other time in the past.

This transition is putting increasing pressure on improving top line and bottom line by leveraging their current investments and infrastructure. This article talks about five ways of as to how this can be achieved.

Reduce the entry barrier:

Improving the reach by reducing entry barriers. This could be via “short duration” pre-paid offerings. A Broadband Service Provider can introduce small denomination prepaid broadband tariffs/packages, enabling  cost sensitive customers and/or low internet usage customers to have access to on-demand broadband service, which is consumed as they use .


Support interoperability by allowing Roaming and offload service in public areas by partnering with mobile operators.  ISPs can partner with the mobile operators in order to provide Wi-Fi access to its customers anywhere. For example, when a customer enters a coffee shop, the customer will get a notification informing him that a Wi-Fi network is available and if he/she chooses they can connect to it, also there won’t be any need for authentication.

The customer can seamlessly connect to the Wi-Fi network and continue their work. This will help the mobile operators off load some network traffic, therefore freeing some of its bandwidth.

Offering Wi-Fi in High Density Areas:

ISPs can setup Wi-Fi zones in places like Malls, Libraries, Movie theaters, Airports, Commercial Buildings etc. They can provide the service on a subscription basis or on a short term prepaid basis to avail the services. The user can buy the services for a certain period of time depending on his or her requirement.

Today, mobile operators prefer to partner than to have their own Wi-Fi, the sole reason being, too much of resources are needed to setup and operate Wi-Fi hotspot zones in different areas of a particular city. Also to maintain the functionality and quality of service at each and every location will again require a substantial amount of resources.

Therefore, mobile operators would rather have an agreement/partnership with the existing ISPs already present in the area. The mobile operators could sell their bandwidth to the ISPs and the ISPs can take care of the maintenance and quality of service. From this perspective ISPs have a good opportunity to increase their business/revenues in the current markets.

Integrating with local businesses – Another way for the ISP to generate revenue is through targeted advertising campaigns.  Since the ISPs already have a presence in different areas they have the option of pursuing targeted advertisement. This allows the ISPs to generate more revenue and also help the local businesses to spread awareness about their brand. Therefore it is a win-win scenario for both the parties.

Create better experience to reduce churn and improve referencability :

Customer experience has a big impact on the churn. Today, a good customer experience is an absolute necessity – be it for new customer acquisition and or existing customer retention. Customer experience includes, after sale services, technical support, total downtime on the network etc.

Good customer experience creates a sense of trust among the existing customer. They feel that the money they have spent is worth every penny thereby resulting in unlikely churn. There is a high probability of them recommending your services to their friends and family, increase customer base and revenue.

Bottom line – Improved Customer Service, Innovative Service Offerings and Strategic Partnerships will result in Revenue Maximization and Churn Arrest!

Related Reading : Broadband billing solution and CRM

By : Ramakrishna Mashetty

Ramakrishna Mashetty is The Chief Marketing officer of SURE! (a Magnaquest product).SURE! is an internationally acclaimed player in comprehensive end-to-end Subscription Business Solutions for PayTV, Broadband and Cloud Computing businesses – through deployment of Metered Billing, CRM, Service Fulfillment, Value-Added Services, and Managed Services.

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