Bandwidth Podcast

When a Competitor Moves Into Your Market: What Really Happens Inside Your ISP

Written by Georgette Lopez-Aguado | Dec 2, 2025 5:50:07 PM

If you’ve ever run an ISP, you know the moment it happens. 
A new competitor rolls into town, and suddenly your phone lines light up. Customers start asking questions. Your team feels the shift. And before you know it, panic sets in.

It’s natural to feel protective of the customer base you’ve spent years building. But the real danger isn’t always the competitor. Sometimes it’s the way fear pushes teams to overreact. 

After talking with operators from all over the country, and reliving more than a few of my own experiences, here’s what actually matters when competition shows up, and what you can do before it becomes a crisis. 

 

Start Before the Competitor Arrives 

Most providers only worry about competitors once they’ve already landed. But surviving that moment begins much earlier.

Make sure people actually know you exist

You’d be shocked how many customers say, “I never knew you served my neighborhood,” even when there’s a tower a mile from their home. 

This is preventable. 

  • Clear service boundaries on your website
  • Real signage on your trucks
  • Local sponsorships (sports teams, community events, school functions) 

If your presence isn’t clear, a “new” provider can look like the only provider, even when that isn’t true.

Define your product value simply and clearly

People need to understand why your service matters to them. 
Not buzzwords. Not complicated charts. 

What speeds do you offer? 
Where do you offer them? 
What makes your experience better than the alternative? 

If customers have to guess, they’ll move.

Don’t let being “the only option” weaken your discipline

Being the sole provider can make a team complacent. No community engagement, no local sponsorships, no updates to the website, no clear brand presence. 

Then the “shiny new ISP” shows up wearing matching polos and handing out flyers, and suddenly they look like the polished option. 

That shift doesn’t happen overnight. It happens slowly, in the years when you think competition will never reach you. 

 

The Minute You Know a Competitor Is Coming 

You don’t need to rush to price-cuts or panic marketing. You do need to be methodical.

Figure out what’s real and what’s noise

Some competitors are serious threats. Others burn out quickly. 

So put on your detective hat: 

  • Check their website for coverage maps or address lookups
  • Watch local towers to see what equipment appears
  • Monitor customer feedback. Are people leaving because of promos, speed, or something deeper?
  • Look up filings or spectrum licenses when applicable
  • Review any mailers they send into your market 

You can’t make smart decisions without understanding the actual overlap between you and them.

Communicate before your customers make assumptions

Silence is dangerous. 

Customers will fill in the gaps on their own, and what they imagine is usually worse than reality. 

Simple, proactive communication goes a long way: 

  • Service status updates 
  • Billing clarity 
  • Setting expectations during industry-wide outages (like AWS downtime) 
  • Reminding customers how to reach support 

If you’re the voice that shows up first and communicates clearly, that’s already a differentiator. 

 

When They Undercut Your Pricing 

At some point, a major provider is going to knock on doors offering something like $30/month with a gift card and two-year contract. When your entry plan is $79.95, that feels like a punch to the gut. 

Price-matching across the board is a trap. It’s a race downward you will not win. 

Instead, think creatively: 

  • Short-term promos
  • Customer referral credits
  • Local loyalty incentives
  • On-site community presence
  • Customer appreciation campaigns 

One operator I spoke with hired local high school students to knock doors, not to sell, but to thank existing customers and share referral opportunities. It worked. They beat a national provider not by chasing price, but by building presence. 

 

When the Competitor Looks Stronger—Check What’s Missing 

If you lose a customer, understanding why is invaluable. 

Did they leave because of speed? 
Because of price? 
Because of reliability? 
Or because they simply didn’t know you offered service on their street? 

Some customers won’t call support. They’ll just churn. If you aren’t tracking exit reasons, you’re missing some of your most important operational signals. 

And when someone leaves due to a service problem, pay attention. If two households off the same access point churn for reliability issues, that’s not a coincidence. That’s a fix waiting to happen. Repair the issue, then reach out, even if they’re no longer customers. It shows integrity, and it often sparks a win-back. 

 

Should You Ever Walk Away From a Market? 

In theory, yes. In practice, it rarely works that cleanly. 

If competition is pushing you out of one small area, odds are it will affect your neighboring markets, too. Providers aren’t closing down single ZIP codes, they’re shutting down entirely. This year alone, we’ve seen more operators close their doors than the past five years combined. 

If you’re considering pulling out of an area, treat it as a sign to review your entire footprint and strategy, not just one pocket of customers. 

 

Love It or Hate It: Should You Match Competitor Promos? 

Short answer: no. 

Giving your frontline staff some flexibility for customer retention makes sense. 
But blanket price-matching rules? You’re training your customers to ask for discounts forever. 

Offer grace where it’s earned. Not where it’s demanded. 

 

Love It or Hate It: Can a Competitor Become an Ally? 

Sometimes you end up with neighboring operators who coordinate, share insights, even refer customers when a tower can’t reach a particular home. 

That’s not quite an “alliance,” but it is mutual respect. 

And in a small community, that matters. 

 

Love It or Hate It: Should You Offer Wholesale Access to a Competitor? 

This one always sparks debate. 

Wholesale can be a revenue opportunity, especially if you have unused capacity. 
But it comes with real risks: 

  • Security concerns 
  • Margin erosion 
  • Brand confusion 
  • Operational complexity 

Some operators swear by it. Others won’t touch it. 
Your choice depends on your network, your business model, and your appetite for managing someone else’s traffic. 

 

What If Your Top Sales Rep Joins the Competitor? 

This happens more than anyone likes to admit. 

If they were truly great, of course the competitor wanted them. 

What matters is how you respond: 

  • Review all open opportunities immediately
  • Reach out to customers with long-standing relationships
  • Reinforce your internal sales processes
  • Identify what made that rep successful and build it into training 

And don’t forget, your former rep knows exactly which of your customers feel the most vulnerable. Get to those customers first. 

You can’t stop someone from leaving. 
You can keep your business from collapsing because of it. 

 

The Bottom Line 

Competition will always show up. The market shifts. Funding changes. Technologies leap forward. 

But the ISPs that survive aren’t the ones who react the fastest—they’re the ones who stay grounded in who they serve, communicate clearly, and keep their teams focused on long-term stability, not short-term panic. 

When you know your value, your footprint, and your community, competition becomes something you can navigate, not something that defines you. 

And remember, every connection you build supports someone’s job, someone’s education, someone’s healthcare, someone’s future. 

That part never changes. 

 

Listen to the Full Episode

Catch my full conversation on the Bandwidth podcast. Available now on Spotify, Apple Podcasts, and the Bandwidth YouTube Channel.