Deregulation of the telecommunications industry is still having major effects on the long distance business services markets. Second-tier companies are dropping prices to attract competitors' customers while regional Bell operating companies and carriers with new voice over IP (VoIP) and wireless technologies are encroaching on the big three long distance carriers' market share. This intensely competitive field shows little sign of relaxing as most providers continue to decrease profit margins to win customers.

This Frost & Sullivan research focuses on the major markets for business long distance services, including both standard public switched telephone network (PSTN) and VoIP segments. By analyzing the strategies of major industry participants as well as their up-and-coming rivals, this study offers your com-pany a privileged view of this evolving industry.

VoIP Service Providers Must Increase Public Awareness

"The VoIP industry has yet to reach mainstream business customers," reports the analyst. VoIP could give customers the service they require at the low price they want. But despite mass-market advertising efforts, many potential clients remain unaware or are unwilling to convert because they fear disrup-tions that could follow a switch to this solution.

"To reach the mass market, the transition from PSTN to VoIP phone services must be seamless," says the analyst. Businesses should not have to alter their plans to use this technology. Providers must educate possible customers as to the cost advantages of VoIP while also offering enriched voice communications, unified messaging, and other enhanced features. This study examines probable challenges for this market and presents effective strategic recommendations, helping your firm develop an effective business plan.

Market Participants Expand to New Markets

"Small office/home office (SOHO) users offer excellent opportunities for long distance carriers," says the analyst.This segment could be an important source of revenue for participants, yet few carriers have successfully marketed to these users. "SOHOs need extra special attention because their business needs can change from month to month or even week to week."

Long distance providers must help SOHOs evaluate their needs and offer a tailored service package that delivers a high return on investment. By developing a plan that meets the specific qualifications of SOHO companies, long distance service providers can reap large rewards. This study pinpoints possible areas for growth, allowing your company to optimize resources and maximize revenues.