IP Services Strategy Analysis

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.

• EXECUTIVE SUMMARY
  
• METHODOLOGY
  
• INTRODUCTION TO IP SERVICES
  
• IP SERVICES DEFINED
  
• FACTORS INFLUENCING THE DEPLOYMENT OF IP SERVICES
  
• STRATEGIC IMPERATIVES
  
• CATEGORIES OF PROVIDERS
  
• CURRENT DEPLOYMENT MODELS
  
• MARKET PENETRATION MODEL
  
• Product Offering
  
• Strategic Implications
  
• The Argument For Market Penetration
  
• The Argument Against Market Penetration
  
• Summary
  
• MARKET EXPANSION MODEL - MASS MARKET PROVIDERS
  
• Product Offering
  
• Strategic Implications
  
• The Argument For Market Expansion
  
• The Argument Against Market Expansion
  
• Summary
  
• MARKET ENHANCEMENT MODEL - ENHANCED SERVICE PROVIDERS
  
• Product Offering
  
• Strategic Implications
  
• The Argument For Market Enhancement
  
• The Argument Against Market Enhancement
  
• Summary
  
• PROPOSED SOLUTION
  
• PRODUCT OFFERING
  
• VALUE PROPOSITION
  
• SEGMENTATION
  
• PRICING STRATEGY
  
• DISTRIBUTION
  
• PROMOTION
  
• THE ARGUMENT FOR THE HYBRID STRATEGY
  
• THE ARGUMENT AGAINST THE HYBRID STRATEGY
  
• CONCLUSION

List of Tables

• Table 1. Strategies and the Carriers that Employ Them
  
• Table 2. SWOT Analysis For Market Penetration Model
  
• Table 3. SWOT Analysis for Market Expansion Model
  
• Table 4. DSL Subscriber Growth Forecast
  
• Table 5. SWOT Analysis For Market Enhancement Model
  

List of Figures

• Figure 1. Commodity Effect On Profitability