Creating meaningful internet service differentiation through segmentation

As Internet consumption levels increase, consumer preferences have gravitated away from slow-speed, intermittent dial-up Internet services to high-speed, full time, broadband services. The basic Internet service provider model of offering a simple connectivity service provides minimal opportunity to create additional revenue points. Internet service providers are now evolving their existing business models, to allow for the creation of additional revenue opportunities through the sale of services above and beyond basic Internet connectivity. The Western Canadian Internet service market is characterized by a duopolistic structure; both incumbents acknowledge that few differentiated qualities exist between their existing basic Internet service offerings. Lack of differentiation has created price-based competition resulting in business challenges. Through the analysis of both primary and secondary data, this study examines the Western Canadian Internet service provider marketplace, and attempts to find relevant consumer segments and appropriate means of creating meaningful service differentiation.