Ethernet Transport Service rates reduced and realigned to fulfill customer needs

by Barbara Vrahnos, project manager – Access Technology and Planning

Our 2018/2019 Ethernet Transport Service rates add another component to your goal of meeting your customers’ needs. Four components of satisfying customer requirements are product, performance, price and promotion. 

Product and performance

The product is ETS, known for its reliable performance. Customers buy ETS because they care about quality. Performance can also be gauged by how you treat your customers, and we know rural ILEC customer service is second to none! Product and performance are just two elements. The remaining two, price and promotion, enable you to retain your customer base.

Price is affected by costs and demand

As of July 3, 2018, we reduced our ETS rates and most members saw a price reduction. Members that did not see a reduction, however, remain at rates that are very reasonable. Declining equipment costs and increasing demand drove the rate reduction.

Members with ETS demand saw rate decreases as follows:

  • ETS 100 Mbps port and short channel termination – many members saw at least a 55 percent rate decrease.
  • ETS 1 Gbps port – many members’ rates decreased by about 60 percent.
  • ETS 1 Gbps short channel termination – a 57 percent decrease overall.

Along with the rate reductions, we realigned the rates to provide for modest rate variations between speeds, making it much easier for customers to increase their service to the next level. Because of these rate realignments, most members will now see a difference between their non-DSL special access rate band and their ETS rate band.

Let’s talk about promotion

Combined with rate reductions, members can take advantage of the optional promotional opportunities available in NECA’s Tariff F.C.C. No. 5. The ETS Port Term Discount Plan reduces the monthly rate-banded rates for eligible ETS elements by either 10 or 20 percent, based on the term commitment period of either three or five years, respectively, selected by the customer.

In addition, the ETS Fixed Rate Option offering not only reduces the monthly banded rates for eligible ETS rate elements by either 10 or 20 percent, it also stabilizes rates. In other words, the ETS FRO provides your customer with stabilized rates that apply to the customer’s ETS service elements throughout the length of the customer’s selected term commitment period of either three or five years. When your customer subscribes to an ETS FRO, stabilized rates for the ETS service elements are not subject to any rate increases or decreases during the entire term commitment period. 

Retain and recruit

The ETS rate reduction and realignment will help members keep existing customers and provide great opportunity to capture new customers or make additional sales to existing customers. Contact your region member service manager for information on NECA’s ETS offerings.

Filed under September 2018 , Tagged with Broadband, Tariffs

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