10g residential CPE

Mark Tinka mark.tinka at seacom.com
Sun Dec 27 10:38:30 UTC 2020

On 12/26/20 20:48, Darin Steffl wrote:

> Aaron,
> One simple question. Why on earth would you offer free internet 
> service? How and why? Your site show 1 Gig symmetrical for free when 
> you should be a minimum of $65 per month to be competitive.


For me, looks like a loss-leader to reel customers in, perhaps with some 
limitations, no guarantees, time/term restrictions, no CPE, no support, 
e.t.c., that make a "smooth" upgrade to 2Gbps or 3Gbps more sensible.

My theory would be that getting customers on to the platform is the 
hardest step. Once they're on, pivoting them isn't difficult, 
particularly if you nabbed them from a competitor that was charging them 
some $$ for 10Mbps.

Think about it, they don't offer a "Multi-Gigabit Wireless Router" with 
the 1Gbps service. Chances are the customers who choose this package 
either have a crappy device, or will likely buy a crappy device on their 
own. They'd never trouble the 1Gbps product, probably call KC Fiber for 
to complain about not getting 1Gbps, upon which KC Fiber recommend their 
own CPE, a more guaranteed package, e.t.c., and in comes the 2Gbps or 
higher, revenue-generating service.

One the network side, it's just the same port, different (cheap) optic. 
A cheap port in use for free is better than an unused port, if the 
switch and fibre are already installed, and at less than 60% take-up.

It's creative, I like it!



More information about the NANOG mailing list