he long distance market, the race to build out a significant long distance backbone for the Internet has resulted in the creation of many, many surplus miles of telecommunications capacity, based on the latest in fiber optic and other high-capacity network technology. This means that new carriers can enter the market, purchase long distance capacity from these long-line wholesalers and offer the service to consumers at drastic price discounts. For the local Internet service provider and other dial up providers, the entry of DSL, cable modem, and fiber optic on the scene has made it increasingly difficult to justify their prices in the face of lower- cost, higher-capacity alternatives. It is very difficult to convince customers that they should keep an older, more expensive, lower- quality product when a much better option is readily available. Chapter 4 Dealing with Technology Churn Customers who is willing to pay hundreds of dollars to gain access to the latest and greatest new phones when they sign up with your company will almost certainly switch when something newer and better is offered. Technology-based churn is actually one of the most obvious types of churn that a provider should be aware of, yet far too many companies are surprised when it happens. In fact, the whole issue of technology-based churn brings us back to the discussion we had in Chapter 2 regarding the new technology assimilation life cycle and the increase in customer interest in the technology. What we didn't talk about very much is what happens when your products are on the downward side of the curve. Early Adapters and Technology Churn We have a similar situation with all three kinds of technology churn. When the technology offered by the provider is first introduced, the first customers to come on board are the early adaptors. Later, as the technology matures, more and more people subscribe, and we begin to climb the market expansion curve. Figure 4-5: Early Adapter Curve Jumping What takes many providers by surprise, however, is that th