Fine Point Technologies Solution Suites

What Service Providers May Be Saying

• We need a solution that helps us maintain and increase our ROI as a broadband service provider.
• We need a solution that helps us better manage our broadband subscribers and reduce support costs.
• We would like to reduce our cost to acquire and install new broadband network subscribers.

The Challenge: Acquiring and Retaining Customers While Keeping Costs Low

Consumer demand for broadband Internet services is growing, with demand in some markets exceeding the industry’s ability to provision it by over 70 percent. Yet, many broadband service providers continue to struggle for profitability, because their expenditures exceed economic yield. Realizing the importance of scale, service providers intensely compete to acquire and retain subscribers, often driving their profit margins to very low levels.

In this environment, the pressure to reduce costs is intense. Physically adding a subscriber to a broadband network is expensive. The average cost of adding a new DSL subscriber within 12,000 feet of the local loop exceeds USD 550. While this figure has been declining since late 2000, it is still substantial, and service providers need to retain a customer for at least 13 months to recoup this cost. In contrast to capital costs, operational expenditures (OPEX) per subscriber have increased by an average of 24.8 percent since the fourth quarter of 2000.

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