MVM@cup.portal.COM (01/13/89)
SECOND ROUND OF ANNOUNCEMENTS and ANSWERS to COMMON QUESTIONS REGARDING the PC PURSUIT PRICE CHANGE 1/12/89 To ALL PC Pursuit customers: Before reading this bulletin further, you should make sure you have read the first "ADDITIONAL ANNOUNCEMENTs..." bulletin. It has been just over a week since the first "ADDITIONAL ANNOUNCEMENTs...". We have had a favorable response to those announcements. However, the messages appearing everywhere are still rather heated, fueled by incorrect (although often understandable) assumptions, unanswered concerns, and the like. As a result of the incredible availability of suggestions (and other input), we have some new announcements. Following these announcements are some more answers to common concerns & questions. The new announcements: 1. WE WILL BE ABLE TO ALLOW USE OF A SINGLE ID WITH THE MULTIPLE ACCOUNT OPTION. That is, you will be able to order any number of accounts (blocks of 30 monthly hours at $30 each) to work with one ID/PW combo. This should improve accounting and ease of use issues. Multiple account IDs will also correspondingly multiply the second tier break point. 2. IF YOU ORDER A MULTIPLE ACCOUNT ID BEFORE MAY 31st, 1989, EXISTING CUSTOMERS WILL NOT BE CHARGED AN ADDITIONAL "SIGN-UP" FEE. Beginning with June 1st, 1989, each time you call/write to INCREASE the number of accounts (or blocks of 30 monthly hours) covered under your ID, you will be charged a $30 sign-up fee (which will likely be called a processing fee). UNDER NO CIRCUMSTANCES WILL MORE THAN ONE SIGN-UP FEE BE APPLIED PER ID CHANGE/ORDER (even if many accounts are added/ordered under that one ID). There will be no charge to reduce the number of accounts covered (or to cancel). 3. WE ARE EVALUATING OPTIONS OF SPECIAL PRICING FOR ACCESS TO PC PURSUIT NETWORK (DAF) HOSTS. Suggestions are encouraged. All adjustments (including those already announced online) will be finalized and more formally announced (via mailing & Net Exchange) in February. 4. If you exceed your cap (some multiple of 30 hours), you will receive a statement the following month showing what your total charge is. THIS STATEMENT WILL INCLUDE CALL DETAIL. The specific detail to be included has not yet been finalized (since we now have until May to adjust this). Addressing common concerns & questions: 1. Why not have a higher cap? Why is a cap needed? Does Telenet want some types of customers to cancel? Why not just charge more for unlimited use? Doesn't Telenet appreciate Pursuiters' FCC effort? What of the rule-of-thumb principle which states: As sales/customers increase, prices go down (or stay the same longer)? All of these questions can be answered through an understanding of PC Pursuit's origins & growth. When PC Pursuit was launched, it was viewed as a service that would use the excess capacity of other services -- ie. it didn't have to pay for many of its own costs. This concept (called an "incremental service") works fine, as long as the incremental service's use (and cost) is largely insignificant compared to the other services that it is riding on. You may have noticed that Telenet has not advertised (or otherwise significantly promoted) PC Pursuit. That is because an incremental service (by its nature) is unable to accommodate a significant number of customers. What wasn't counted on is the awesome power of word-of-month within the hobbyists' community (BBSes). The Pursuit customer base began to grow very quickly, and has never stopped. It got to the point that the quality of service degraded to the point that even patient customers had difficulty using PC Pursuit (about a year ago things were at an all time low). To make matters worse, there were too many customers (and too much usage) to consider it as an incremental service any longer. So not only was there no marginal profit, there wasn't money to pay for ANY improvements, expansion, development, or dedicated personnel. This was the situation when I started as PC Pursuit's Product Manager in February 1988. I was asked to review the product, and make recommendations to either "fix" the service, or cancel it altogether. The most obvious solution (and many were in favor of this) was to cancel the service immediately (PC Pursuit wasn't paying its way, customers were complaining of poor service & support, there were serious billing problems, lots of abusers & hacking -- all because the service was not intended to grow as it had). Keeping the service the same was not an option either -- Telenet prides itself for providing *superior* quality datacomm at the best rates possible. The key to the solution was that we found a pricing scheme which is still extremely low, has many of the same attractions as the original (predictable fixed monthly bill, large blocks of time already paid for so regular extended use is encouraged), was fairest to the majority of customers (just increasing the price substantially would be unfair to low-end users -- who have less presence but are in the majority), provides for enough funds to pay for needed improvements, and finally removes the second class stigma because it becomes a regular service (ie. it makes some profit for the company while paying its own way). In addition, it was agreed that our customers deserved to see substantial improvements BEFORE a price change, as evidence to PC Pursuit's greatly improved priority. This is why we waited almost a full year to announce any price changes (although exact pricing wasn't finalized until December 1988). We want to work with you. We are listening to everything you are suggesting. Together, we can try to satisfy as many peoples' needs as possible. To offer something for every type of customer is the goal, as long as its fair to the majority (which includes casual users). If you step back and look at the new pricing on its own (its not objective to compare it to old pricing which wasn't designed to pay its own way), its hard to argue that we still don't have a pretty amazing price. If you ask our competitors, they're still scratching their heads wondering how we can keep the price so low and claim to make ANY profit. I'm very proud of this. It would have been impossible to do if the FCC had ruled differently last year. I repeat my thanks to you for your efforts. 2. Why did Telenet not give more notice (to existing customers or recent sign-ups)? The announcement was made as soon as new pricing was approved. The approval was delayed several times, resulting in a rather small margin of time. This small margin was pointed out by many and is one of the reasons that over cap charges were delayed until May 1989. 3. Why doesn't Telenet offer online password changes, or online charges-to- date information, etc..., like other "online services"? Telenet's Public Data Network (PDN -- which PC Pursuit uses) should not be compared to a centralized computer system based online service. It is a long distance communications *network* based service. Most such features are not theoretically impossible, but they are not nearly as straight forward to implement. A fairer comparison would be that of another LD service, such as AT&T's Reach out America. This service doesn't even have IDs (allowing the customer to call from any phone) -- as far as I know. That said, don't be too surprised if you see a new feature in this catagory in the near future (I can't be specific, it has not yet been announced). Regrettably, billing or usage information online is not expected anytime soon. 4. How much $ did Pursuit get in '88, how many customers, what is average usage... or other statistics/figures? The problem with these sorts of questions is that answering them could potentially break a rule that I can not break -> Thou shall not disclose proprietary information, especially if it is of any value to a competitor. I can say two things- we have many thousands of customers, and, the average usage per month is well under 30 hours per month. Sincerely, Peter Naleszkiewicz Outdial Services Product Manager
jwright@atanasoff.cs.iastate.edu (Jim Wright) (01/13/89)
In article <8901121632.1.21423@cup.portal.com> MVM@cup.portal.COM writes: [...] > Addressing common concerns & questions: [...] > Sincerely, > Peter Naleszkiewicz > Outdial Services Product Manager Thanks for the message. But you haven't answered the most important question of all: Did you actually read all those thousands of messages left on the Net Exchange? :-) :-) :-) :-)