“Service Level Agreements”
Company X, Inc., is a small locally owned organization that has been operating for almost 10 years now. The company employs only 14 people. Company X is a fixed wireless ISP (Internet Service Provider) that specializes in providing high-speed Internet access to rural areas of the San Joaquin Valley. The company also offers many other services the help it to generate more income such as network consulting, web hosting, co-location, point-to-point wireless solutions, and other Internet access services. With competition high the company is in need of a competitive advantage that will help bring it to the urban market. The company’s current strengths over its competitors are not sufficient enough to gain a foothold in the urban market. Targeting urban businesses with a need for high, guaranteed speeds are the key to entering into this world dominated by AT&T. With new wireless equipment from a company called Wave IP, Company X can find its niche with SLA (Service Level Agreement) contracts.
Before Company X existed its sister company, The Works Internet LLC., was running the show providing many of its current services except fixed wireless Internet. The Works owners Craig DeManty and Garrett Burbage joined forces with Peter Sorensen in 2003 to form Company X; the company is now absorbing The Works Internet completely and phasing out dial-up Internet. (Company X). This locally owned company holds the largest market share in fixed wireless broadband Internet and with a successful marketing plan they will become a major competitor with the urban giants Comcast and AT&T. Offering the consumer an Internet connection is nothing revolutionary. The biggest competitors in California are AT&T, Comcast, Verizon, and Sprint. Sprint Broadband is our number one brand competition. They are offering wireless broadband connections to rural areas via microwaves with similar price structures. (Sprint). However, none of these companies offer realistic solutions, speeds, or Service Level Agreements. Rural areas where ATT and Comcast cannot reach leave Company X as the only company offering SLA’s. Realistically any company looking for an SLA agreement is interested in one thing, speed. Verizon air cards and other Satellite providers can hardly provide speeds that exceed 300kbs download speeds. (Verizon). Comcast doesn’t offer SLA’s. (Comcast). ATT and Sprint offer minor SLA’s at poor speeds in urban areas and nothing in rural locations. ATT provides service through telephone lines by means of DSL or T1, Comcast offers service through coaxial cable, Sprint provides service through telephone lines and microwaves, and finally we offer services through telephone lines—T1, DSL, Dial up—and also through broad band microwave connections. Company X operates in between Monopolistic competition and Oligopoly type markets. High speed Internet is a fairly recent technological movement that is sweeping across the world at amazing speeds and is certainly in the Prosperity stage of the business cycle. Comcast, AT&T, Sprint, and Verizon are all competing aggressively against each other and spending millions on advertising and promotion. (Suite101). With our current acquisition of licensed frequencies from the FCC the company has no foreseeable legal and regulatory forces that will halt operations. Through technology Company X is able to introduce a new service to its customers, the SLA. Companies all over the San Joaquin valley are moving forward and embracing the technological trend, especially farms and dairies. Hardware and software is being developed for all organizations and demands a high-speed Internet connection. One example of the increase in technology being adopted by all organizations is security systems and cameras. Employers want to be able to monitor these cameras from anywhere in the world and this creates a need for a reliable and...