How to handle competition in the ISP market
Arvinder Singh Sahni
Founder / MD · Jan 20, 2025
Introduction:
If there is a market for any product or service there is bound to be competition in it too. There are very few industries or services where there is a monopolistic situation and even in those there is somewhat competition. Competition is like taxes or death, it is simply inevitable and has to be accepted whether one likes it or not.
In a way competition is good both for the consumers as well as the suppliers of products and services. The consumers get a better product and a better value deal in a competitive environment and they can select from a choice of suppliers. On the other hand the suppliers also benefit from competition because they have to continue enhancing their product or service offering to keep up-to the competition. The positive side of competition is that suppliers have to work hard and not get complacent. They also get to learn to become better in their offering because of competition.
Overview of Competition in the ISP Industry:
The largest share of internet services is of the telecom service providers like RJIO, Airtel, BSNL and Vodafone Idea. These companies provide Voice, Data and Video using 3G,4G and 5G Services on mobile phones which has the largest share as the source of internet to consumers. These same Telecom companies also provide internet through lease lines as well as fiber to home and wireless internet to the home and have a significant share as the supplier of internet services to homes and offices.
Apart from Telecom companies internet services are provided in India by Broadband Companies which are focused on Data and Video Services. These companies essentially provide internet services through a wide network of fiber and copper and to a small extent using wireless medium to homes and offices.
We would like to focus on these Broadband Companies as regards to how to handle competition in this blog.
How to handle competition:
As discussed above, broadband companies face 2 types of competition first from Telecom Companies and second from other broadband companies who offer services in their areas.
Here are a few Do’s and Don’ts to handle competition:
Do’s:
1. Provide new connection immediately – The Telecom Service Providers often take longer time for a new connection because of the sheer size of their operation. The Broadband ISP’s being smaller should be more agile and should try to do the connection on the same day as the enquiry or at the earliest possible.
Technology should be used for faster new connections as suggested below:
a) ISP’s should map all the buildings and apartments in their service area on the CRM so that when an enquiry for a new connection comes they could check the feasibility of the same immediately.
b) Admin app should be used for immediate KYC of user as well as online payments so that the new connection can be done immediately
2. Brand your broadband service and showcase your Logo on the ONU / ONT / End User Device in a manner which enhances the image of the ISP in the eyes of the end user.
3. Try to put a small vinyl board on the gate of the building or their compound wall or notice board saying that this building is serviced by your broadband company and display your Logo along with your contact details. Try to get publicity by not spending too much.
4. Provide prompt service in case of any downtime or complaints – this can be streamlined by using app for the support staff so that they may be informed of the complaint in real time while they are in the field and address it promptly.
5. Help users in setting up / managing the Wi-fi network within their homes because most issues faced by users are due to a bad wi-fi network at the users home.
6. Provide facility to end users to renew or change their plan, make payments, submit complaints, submit suggestions etc. both online and through end user app so that they can do so from the comfort of their homes at any time they choose so.
7. Study the competition in your area and provide competitive rates, best plan choice and best quality of service possible.
8. Educate your support staff and train them to be empathetic towards the customers internet needs. Try to keep a healthy atmosphere in your company. A happy team has happy customers.
9. Take user feedback seriously and also ask customers for new referrals for which you could also offer them some incentives.
Don’ts:
1. Don’t neglect your customers and don’t believe that they have no or very little choice – it’s a very competitive atmosphere out there
2. In case of competition from a new entrant, don’t panic and reduce your prices drastically. Some tweaking or adjustment is ok but don’t take drastic steps in panic.
3. Don’t panic in case there is a breakdown of your service. Inform your customers of the downtime and let them know when the service is likely to become normal by email, sms or WhatsApp.
4. Don’t say bad about your competition. Simply focus on providing a good service at a fair price and don’t talk much about competition.
5. Don’t go in overdrive in your promotion activities. Keep your cost low and don’t spend too much on promotional campaigns in response to competition.
Conclusion:
Competition is always going to be there if there is a demand for a product or service. Take it in your stride and enhance your service offering so that you are the first choice of your customer. Better quality of bandwidth and better service will always win over any other promotional effort. Use technology to enhance your product and service offering. Maintain an open window with your customers for relevant feedback and act promptly on it.