February 3, 1997
Internet Service Guarantees: It shouldn't be a contradiction of terms
By Bob O'Donnell
Have you checked your Internet service provider (ISP) agreement lately? Most companies
that offer Internet access offer no guarantee whatsoever about the quality of service you
pay for. In fact, many of them specifically excuse themselves from responsibility for the
reliability of their service and its potential impact on your business. Is that any way to
run a business?
Well, it obviously has been for the last few years. But I think America Online's
dramatic refund announcements last week may start to change that (or, at least it should).
Think about it: The world's largest ISP (nearly 8 million subscribers, but no longer
counting) basically says that customers should be guaranteed some level of service or get
their money back. Intentionally limiting the size of its customer base is a strong
statement about the seriousness of the problem and, to AOL's credit, the company's
attempts to address it. Oh, and according to one report I read, the various types of
refunds could cost the company as much as $10 million.
AOL's busy-signal problems and its attempts to solve them raise some very interesting
questions. Specifically, can consumers and businesses demand guaranteed levels of service
from their ISPs? I believe that as a result of AOL's recent move to offer refunds,
customers are going to exclaim a resounding "Yes!"
That's a big challenge for the rest of the ISP industry. Many of the smaller ISPs,
especially those without such deep pockets, would have trouble matching these commitments.
(Certainly, organizations that pride themselves on customer service probably have some
type of refund mechanism for dissatisfied customers, but I'm unaware of any ISP that's
dealing this openly with the problem of guaranteed service.) And more importantly, what
are the ISPs doing to ensure reliability in the future?
ISPs need to address these problems because more and more companies are looking to the
Internet for solving mission-critical problems. These companies won't be able to make
those projects happen, however, unless they feel confident about the connections they
have. The answer, I believe, is written service guarantees. Corporate IS managers, in
particular, should demand a minimum of service from their Internet provider.
As the ISP industry shakes out, the companies that distinguish themselves with high
levels of service will undoubtedly stand a better chance of surviving. An ISP that takes a
stand on service-level guarantees and provides potential customers with a written
statement about service expectations would undoubtedly attract the attention of many IS
managers shopping for Internet access providers. Of course, the ISP would have to actually
deliver on its promises and meet its guarantees before they are of any real value. But
improving the reliability of the Internet by guaranteeing access would be a great step in
the right direction.
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Copyright 1997, by InfoWorld Publishing Corp., a
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