Small fiber Internet Service Providers (ISPs) are some of the greatest assets a community can have, but that doesn’t mean running a small ISP is easy. The headwinds that small ISPs face are numerous, and for many, the market forces are presenting new challenges. 

Here’s what we’re seeing: 
  1. Fixed Wireless Access providers are undercutting wireline ISPs with lower prices. Though their speeds and reliability are inferior, customers don’t always understand that, and FWA is peeling away customers.
  2. Big cable is vulnerable and losing customers overall, but trying to fight back with new types of subscription bundles – like mobile broadband (cell service) – to retain customers and make it harder for customers to switch.
  3. Big ISPs across the board are adopting AI at a fast pace, which is unlocking efficiencies and new marketing strategies
  4. Big ISPs have the resources and scale to participate in grant programs in a way that many small ISPs don’t, boxing them out of current resources
  5. Big ISPs that have internal construction crews can better predict and constrain costs, versus smaller ISPs that are more reliant on contractors
  6. Grant programs, tariffs, and workforce shortages are causing construction prices to fluctuate in a way that increases construction risks (especially for small ISPs that don’t have much cushion) 
In response to these challenges, small ISPs can’t be complacent. RISI has worked with many small ISPs on ambitious projects over the past few years, and we know that small ISPs can successfully compete with the right broad strategies: 
  • Lean into being local. People love home-grown companies – use this to your advantage. The big players won’t sponsor Little League,  esports leagues, performing arts, or show up at the farmers market. Small ISPs can do this and cultivate goodwill. 
  • Reevaluate how your staff uses technology tools. Whether scanning the market for OSS/BSS systems with great features or teaching your staff to use general AI better in their work, keeping up with the big telcos means setting aside some time to intentionally adopt efficiency-saving technology. 
  • Double down on great customer service. One thing the big players will never compete on is the quality of customer service. The best small ISPs find that when customers call with an issue, solving it quickly with local, friendly customer service actually strengthens their Net Promoter Score. 
  • Increase customer education. Whether it’s helping people understand how to replace their cable with a streaming bundle or understanding the true difference between wireless and fiber, make sure customer education is a strong component of your marketing strategy. 
  • Do your due diligence when expanding.  Take a careful look at the customers and the competitors, and model the business case carefully. A comprehensive, representative survey goes a long way in illuminating what customer demand is in new markets, especially with fixed wireless snapping up new customers in real time. 
  • Make sure local leaders know how great you are. When local business leaders, elected officials, economic development professionals, realtors, and more know that your ISP is dedicated to the community, they become advocates.  Help them understand this by equipping them with clear information about your impact in the community. 

Have questions on how your small ISP can navigate the changing market? Our team is here to help. Get in contact today and sign up for our newsletter list.