Re: UKNM: line one

[Tim Howard]

Lois Grayson wrote:


> I think Sara's perspective is pretty accurate. It's true, I reckon, it's

> getting tougher all round. And the ISPs are beginning to struggle; last

year

> the iGroup (the eBusiness consultancy I worked with) calculated that the

> minimum regular user base an ISP needed to be 'real' and sustain a

business

> model was c250,00 - so when I was mailed an IPO for an ISP boasting an

> established base of just 140,000 last week the bin got a snack.


**I'd like to add to this that although there are a few 250,000 ISP's

out there, all new entrants to the market will need to rely upon the

systems and bandwidth of the IP backbone providers.

These are the guys making the real money - sod being an ISP, it's just

customer technical support and poxy mailbox administration.


You're right that Freeserve are going to the french, but let's not be

deluded here, the french (wanawhat.fr?!!) are likely  to sell it to

Mannesmann or C&W or Global Crossing - telecomms has been going through

consolidation for a number of years, and will continue to do so for

years to come, 'cos let's face it who wants to run a network of dial-ups

and DSL's for the rest of their life. It's a case of build your database

and sell it b4 the network grinds to a halt.


Some facts:-

average customer retention within 12 months of merger/acquistion

 >

 >

 >

 >

 > wait for it

 >

 >

45%.....


That's one hell of a blood letting, and that's the average !!!


Telecomms was a goldmine, back in the gold rush.



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