How to Get Ahead of Competition

Competition in broadband isn’t going anywhere, especially here in Tennessee. As more communities gain access to high-speed internet, providers aren’t just competing to reach new customers, but also to keep the ones they already have. For rural broadband providers, that means understanding who the competition is, what they offer, and where your own strengths can make a difference.

In a recent article, broadband consultant Terry Chevalier of Sunstone Associates breaks the competition into four main groups: private equity-backed fiber companies, fixed wireless providers, cable companies, and low-earth orbit, or LEO, satellite providers. Each has a different reason for entering rural markets, and each has weaknesses local providers can compete against. Fiber overbuilders may be focused on gaining customers quickly, while local providers can demonstrate a long-term commitment to their communities. Fixed wireless offers easy installation but relies on shared wireless capacity. Cable can attract customers with promotional pricing, while local providers can offer simple, predictable bills and trusted service.

Then there’s Starlink.

Chevalier argues that rural providers shouldn’t dismiss it: Starlink works well for many customers, Terry says, and its pricing can make it tempting to try. But local providers can offer something a satellite company can’t easily duplicate—someone who actually answers the phone. Rural providers offer nearby employees, local technicians, and people who know the community, while Starlink customer service is nil. There’s also the fact that Starlink users can easily rack up plenty of hidden fees by way of demand surcharges, equipment charges, priority data, and service plan modifications. Providers can compete by making their total cost easy to understand, offering simple monthly pricing and creating a quick, easy win-back process for customers who try Starlink and decide to return. As Terry points out, that return should be as painless as possible.

Finally, competition doesn’t mean providers have to race to offer the lowest price. Research cited by NTCA’s Mike Romano suggests that a small increase in a customer’s monthly broadband bill is unlikely to make them cancel service. Price matters, but so does reliability, service, and the overall customer experience. The takeaway for rural providers is simple: Know what your service is worth, make that value clear, and give customers specific reasons to choose you. Competition is here, but rural providers already have many of the tools they need to compete.