Convergencia Research, Análisis y consultoría
Thursday, March 10, 2022

Andina Link 2022

Recipe for the survival of small and medium-sized ISPs: ally and outsource

To survive, small and medium-sized ISPs must adopt the same criteria as large operators: focus on the core and hand over peripheral areas of the business to third parties.

Marcelo de Ambrosio, Velonet president and head of the Argentine Chamber of Small Internet Providers (CAPPI) of Argentina, presented this idea in Andina Link before an ISP audience.

According to De Ambrosio, when operators get rid of the tower business, they bet on an improving efficiency at the heart of the business, at the risk of adding a new member in the value chain with whom they have to negotiate to sustain the infrastructure.

In this view, the essence of the ISP is to be at the customer's side with sales and service. Competitive pressure led small and medium-sized ISPs to team up, a trend especially seen in Brazil. The next logical step is for ISPs to outsource aspects such as the call center, infrastructure and logistics, to focus on human capital and knowledge and automate processes that remain in their control.

 "Thus, they will be able to compete in markets where big players don't step on them," De Ambrosio concluded.

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