With competition as brisk as it is, strategies are unfolding that will determine how this industry is shaped going forward. Three strategies in particular stand out. They are as follows:

• Market Penetration
• Market Expansion
• Market Enhancement

The optimal strategy is to combine Market Expansion and Market Enhancement. In this scenario, the provider would offer access alternatives to attract a new profile of customers. However, the cornerstone of their strategy would be to provide a suite of IP services to complement the access product. This allows for higher retention rates and enables the carrier to compete on price for the access product, safe in the knowledge that they are generating revenue on services. The most popular and most effective way to implement this strategy is by partnering with content providers. This allows the carrier to concentrate on core competencies while capitalizing on the content provider’s brand.

Cahners In Stat believes that by adopting this hybrid strategy, the carrier will enjoy higher degrees of customer loyalty and greater profitability. As a result, they will position themselves as a leader in the marketplace.