The Xtra Challenge, Aardvark's comment Copyright © 1996 to Bruce Simpson

I think ISPs may have a valid gripe with respect to the pricing structures implemented by Xtra. If, as is claimed, independent ISPs can't buy access through the 0800 service for $2.50/hr as Xtra can then something needs to be done. The other complaint mooted by ISPANZ about Xtra's service adversely affecting the quality of the internet's content within NZ doesn't hold water though. Content is something completely separate from delivery and most of the high-quality content on the web in NZ doesn't originate from ISPs themselves. One of the giant-killing qualities of the net is that almost anyone with a computer, a modem and an internet account can publish themselves on the world-wide-web. The fact that we have such a diversity of ISPs at present is good news of course, insomuch as it ensures a good level of competition and maintains pricing at an accessible level. Now even if Xtra do become "the" internet in New Zealand, I can't see this adversely affecting the ability of content developers to create and publish their wares. Okay, maybe Xtra won't link to your site but the net is a *lot* bigger than Xtra and users will find you through search engines such as Alta Vista, Yahoo and the like. Let's not also forget that Clear and BellSouth, both potentially stiff competition to Xtra, have yet to make their move. At the very worst we'll end up with a duopoly situation which will guarantee that Xtra won't be able to hike their prices up again once the market is won. My point of view is that content creators should be happy that the cost of internet-access is dropping (albeit with sympathy for the ISPs). It must be remembered that without patronage there is no content and so the more internet users there are in NZ, the more valuable content becomes. Love them or hate them, Xtra have already brought a lot of new users onto the net, each of them a potential client for content providers. What should ISPs be doing now? By all means keep up the fight... but don't get too diverted by it. Look closely at your strengths and remember that once net access becomes a "commodity", content will really be king. He who has the content will win. Xtra has shown itself to be pretty thin on the ground with respect to content, and it's not something that you can necessarily just go out and buy - regardless of the size of your chequebook. If I were an ISP I'd be focusing my attentions on forging joint-ventures with good quality content producers so as to protect my long-term profitability - regardless of the outcome of the Xtra battle. It's time for ISPs to get into bed (figuratively speaking :-) with as many content providers as possible and build some real value on their sites. If you take this strategy then you can leverage Xtra's efforts at recruiting new customers to your own advantage. Let Xtra take the measly $2.50 per hour (which may or may not represent a profit - who knows?). Why not become one of the sites that has invested in good content so you can capitalise on Xtra's hugely expensive marketing and support activities. Let Xtra bring the customers to your door and let them bear the burdens of expensive marketing, operations and help-desk support. If they want the internet access market - let them have it. Look at it this way - Xtra's strength is that they own the pipes, the small player's strength is that they own the content. Does it not make sense to concentrate on your strengths rather than dwell on your weaknesses? I know it's easy for me to say this when I don't have a fortune tied up in systems and hardware but I don't think anyone can afford to pretend that the Xtra threat is going to go away just because everyone thinks it's unethical, immoral or illegal. Sometimes attacking your foe's weakness is the best defence! Do you agree or disagree with my comments? Why not have your say by sending a letter to the editor

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