Is Internet Solutions oversold?
The behavior of Internet Solutions (IS) in the relationship with my company is inexplicable, as their actions will forever destroy their long term survival as a supplier of ours. When a company focuses on short term gain over long term gain there is normally a reason. Could it be the selling price to NTT or is something fundamentally wrong with our internet industry in general? Have we created the very playing field that rewards only those that are focused on the short term?
Our (South Africa) internet model works on a shared model (international term) , it is very interesting in this country it is called a contended model, the reasons for this difference will become obvious with the following parable:
In a certain village there are only two bakeries with limited production capacity, the limitation on capacity being a historical government funded wheat monopoly.
Now the villagers are demanding more bread, however the wheat supply although now unregulated is still limited. Enter the marketing gurus, lets auction off the bread in slices, they proclaim. The villagers now pay a discount for the bread on the understanding that they might get four slices some days on others one slice. For those who can afford a full loaf, a premium is charged. The bakers have died and gone to heaven as the profits roll in and the rest of the world salivate at the super profits that these bakers are making.
Now all would be well, if greed did not now show its ugly head. The bakers now begin to oversell their capacity and the villagers start getting crumbs and not slices, furthermore they get the villagers to commit to one year of crumbs, by promising slices, they also force the villagers to sign confidentiality clauses. Thus locking in their excessive profits for a minimum of a year, some bakers push this to three years. (the midas touch)
The villagers now being reasonable people begin to complain to the complaints department. The managers start shortening the loaves of the full paying customers in the hope that they wont notice. Now we all know how this story will end... The villagers set fire to the bakeries, its what happens when you think of the resource you have is a contention, ie it needs to be fought over. When the rest of the world talk about a shared space.
So are the directors of IS boosting their profits at the expense of their customers for some short term gain or am I the only fool who believed the salesman's promise of a full loaf of bread (un-contended space).
Would love to hear from others, to verify my contention. (Could not resist the pun)
Have a beautiful day
Bob
The behavior of Internet Solutions (IS) in the relationship with my company is inexplicable, as their actions will forever destroy their long term survival as a supplier of ours. When a company focuses on short term gain over long term gain there is normally a reason. Could it be the selling price to NTT or is something fundamentally wrong with our internet industry in general? Have we created the very playing field that rewards only those that are focused on the short term?
Our (South Africa) internet model works on a shared model (international term) , it is very interesting in this country it is called a contended model, the reasons for this difference will become obvious with the following parable:
In a certain village there are only two bakeries with limited production capacity, the limitation on capacity being a historical government funded wheat monopoly.
Now the villagers are demanding more bread, however the wheat supply although now unregulated is still limited. Enter the marketing gurus, lets auction off the bread in slices, they proclaim. The villagers now pay a discount for the bread on the understanding that they might get four slices some days on others one slice. For those who can afford a full loaf, a premium is charged. The bakers have died and gone to heaven as the profits roll in and the rest of the world salivate at the super profits that these bakers are making.
Now all would be well, if greed did not now show its ugly head. The bakers now begin to oversell their capacity and the villagers start getting crumbs and not slices, furthermore they get the villagers to commit to one year of crumbs, by promising slices, they also force the villagers to sign confidentiality clauses. Thus locking in their excessive profits for a minimum of a year, some bakers push this to three years. (the midas touch)
The villagers now being reasonable people begin to complain to the complaints department. The managers start shortening the loaves of the full paying customers in the hope that they wont notice. Now we all know how this story will end... The villagers set fire to the bakeries, its what happens when you think of the resource you have is a contention, ie it needs to be fought over. When the rest of the world talk about a shared space.
So are the directors of IS boosting their profits at the expense of their customers for some short term gain or am I the only fool who believed the salesman's promise of a full loaf of bread (un-contended space).
Would love to hear from others, to verify my contention. (Could not resist the pun)
Have a beautiful day
Bob
