Are you locked-in by your ISP?

I have been thinking how to ensure that my decision on an ISP accounts for any disappointment in the coming months. How can I build in flexibility to switch, if I must, with the least amount of inconvenience?

One of my favorite books in graduate school, "Information Rules; A Strategic Guide to the Network Economy" by Carl Shapiro and Hal R. Varian, offers great counsel. Written in 1999 its principles remains very relevant.

Over 100 years ago, a decision was made to use narrow gauge for the railway lines in Kenya. That decision limits the options of the new privatized railway company, in 2010, on railway engines and bogies it can lease or purchase. The alternative is to consider switching to the standard gauge used by over 60% of the world but the capital expenditure would be astronomical.

According to Shapiro and Varian, "when the costs of switching from one brand of technology to another are substantial, users face lock-in."

Consider the following examples;

• AccessKenya are offering, the office I work for, a reduction in costs by KES 12,000 each month for the 2048 Kbps up and down link. That is good but they are also offering this in a 12 month contract!
• I switched from a BlackBerry to a Nokia 3 months ago. When I requested Zain aka Airtel to cancel the BlackBerry service and just retain the unlimited Internet I was promptly notified I am on contract until March 2011 and cannot cancel the service.
• Safaricom are offering free equipment and installation for the WiMax high speed broadband Internet but with a 12 month contract.

Thinking about lock-in before you make your decision on which ISP to sign up with will help you avoid lock-in and give you more leverage in the future! That said if your ISP is any good they will do all they can to lock you in!