ISPs to top up revenues on disaster relief schemes

By Matt Whipp

Posted on 26 Mar 2003 at 16:51

A recent Forrester report on the impact of the war on the Internet predicts ISPs will top up revenues by 'exploiting' disaster relief initiatives.

The report suggests that ISPs will get a 'much-needed cash injection' by 'exploiting the billing relationship with subscribers.' This is based on evidence from fund-raising initiatives in the aftermath of 11 September when 'ISPs like AOL helped raise £150m through online fundraising, of which they took a small cut,' reads the report.

According to Hellen Omwando, author of the report, there was too much money raised. 'Charities were not sure how to channel the money,' she said. 'Some of it was unaccounted for and we don't know how it was used.' Most of the problems lay in poor administration, she said, and while she did not suggest that any of this was being creamed off by ISPs, money was being made in the hosting and billing processes that charities and organisations required to set up these fund-raising schemes.

This time around though, ISPs are fully aware of the amount of money that will be sloshing around these poorly administrated funds. This, coupled with the poor economic climate, and exacerbated by the effect of the war in Iraq, means they will have to be more creative than ever in ratcheting up revenues.

Omwando said that ISPs will be thinking 'We know that people are more willing to give and that there are companies and organisations that want to jump in and offer their support, so let's come up with a creative way of helping them do this.'

She said that ISPs would more likely be targetting companies with philanthropic policies and funds, rather than charities. This is a far less controversial route and means ISPs can fudge the fund-raising issues with a mix of revitalising company brands and other marketing and commercial services.

She added: 'There is a potential to make something of this, but you need to be able to massage the way you do it.'

In the US such practices would be seen as less controversial related to Iraq, which most Americans support, than September 11, which occured within the US.

But however controversial such strategies, Omwando thinks it would only help soften the blow of surviving in a depressed market. 'It's not gonig to change the fortunes of the ISP industry,' she said.