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North American Long Distance Service MarketsProduct Type: Market Research ReportPublished by: Frost & Sullivan Published: March 2001 Product Code: R1-1925 Description New Technologies Spur Competition in Long Distance Service Markets With new technologies expected to supplant witched long distance (LD) legacy systems, the North American LD markets have become a highly competitive environment. To maintain market share, witched LD participants must implement the technology for voice over Internet (VoIP)and wireless technology or forge alliances with other companies who already provide these services. This Frost & Sullivan analysis of the North American LD service markets will give market participants a clear view of the industry and how Internet protocol (IP)routing and other routing platforms will affect legacy systems. For this research, Frost & Sullivan concentrated on the witched toll services over private line and public networks to highlight trends for legacy witched platforms. Long Distance Providers Create New Solutions to Maximize Revenues Even though the volume of calls is increasing, revenues are dropping as a result of lower per-minute rates. Long distance providers can offset this trend by developing creative calling plans to stimulate end-users' demands.. "Many service providers are offering competitive pricing to attract and retain customers," states the author of this report. "For example, many companies have introduced a flat rate residential plan that includes 1000 minutes of usage per month for a set price." Consumers want high speed, high quality and customized services from their LD service providers. Market participants that can combine LD services into complete solution packages, or with more profitable telecommunications products, will increase their profit margin and stay ahead of the competition. International Markets Favor Switched Long Distance Systems The international market remains an area where witched LD participants can still excel. In order to gain market share, however, providers need to create contacts in international markets and negotiate favorable contracts with local carriers. "By negotiating favorable terms with foreign carriers, LD participants are able to reduce per-minute charges without sacrificing decent profit margins," states the author. This Frost & Sullivan research is unique in that it focuses on a traditional communications services industry that has been significantly influenced by the Internet and other new technologies. Users of the report will help their company evaluate the market's potential and formulate successful investment strategies for the future. Table of Contents
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