Will Changes in ISP Privacy Rules Increase Churn?

Andrea Wood | July 05, 2006, 02:00 PM

A few weeks back Bell Sympatico, Canada's largest Internet service provider, changed its privacy policies for consumer accounts. Now, Bell may monitor use of the network to supply information pertinent to government requests. Many observers and subscribers to the ISP believe this is the first step in disclosing information without a court order. Others believe this step is merely in anticipation of change to government access legislation expected in the fall.

No matter the reason, some of Bell’s subscribers are surely reconsidering their service provider. Bell isn’t the only high-speed ISP in the country; there are more than five dominant players and hundreds of smaller providers offering service throughout the country. These players are watching and learning as the media unleashes its fury on Bell. They are planning new pricing packages, their own privacy policies and campaigns to convert subscribers. They’ll promise to protect subscriber’s rights, and will wisely capitalize on this incident. The rate of churn, however, may be relatively low. Many consumers are happy with their ISP service, as Bell’s high-speed pricing is quite competitive. Other subscribers don’t feel their online activity warrants concern about monitoring. So, while some consumers will consider a change, the hype around the privacy rules isn’t anticipated to cause massive churn.