TAG | BigPond blasted: can 14,000 net users be wrong? |
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| by Stuart Corner | |
| Wednesday, 05 December 2007 | |
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Page 2 of 2 What do these conflicting stories tell us? First off, PC Authority readers and users of the websites that helped feed respondents into the survey are clearly tech savvy. They are likely to know what Internet access services are available, what they cost and how well they perform. The majority of the population doesn't and there are three things that BigPond really has going for it: a massive marketing budget, the Telstra brand and the opportunities for bundling and cross-selling with other Telstra products. BigPond could invest more money in customer service, it could cut prices. It could do lots of things that would improve its showing in surveys like PCAuthority's, but they might not produce the same bang for buck as bucks spent on advertising and promotion. With market share close to 50 percent and growing, without knowing what it is spending to promote and support the service you can't argue with Telstra's strategy. What the results of this survey really demonstrates is that, despite the good showing of smaller ISPs like Westnet Internode, competition is not has healthy as it should be. In a really healthy market with several strong competitors of comparable size there is no way the market leader would rate so badly against its competitors and be able to retain its position for long. As the number two player by market size Optus has much to answer for. It fared better than BigPond with an overall rating of three stars but it should be providing really stiff competition to BigPond and forcing it to lift its game or face loss of market share.{moscomment}
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