Senior Engineer

In: Business and Management

Submitted By ahmaher
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1.4.1 Bundling: Consumers value convenience more than anything else. A company’s ability to provide multiple services like wireline / wireless/ high speed internet / video at an attractive price not only provides value to the consumer but also helps the company’s bottom-line due to reduced customer acquisition costs. It also is widely believed in the telecom industry and supported by the data, that churn reduces drastically for customers subscribed to a bundle as a result of increased switching costs.
1.4.2 Network Quality: One of the key difference between the old generation PSTN (public switched telephone network) used by telecom companies versus the new generation IP networks used by both the cable providers and VoIP providers is the ability to receive phone calls on the PSTN networks when the power is out. There is difference in quality of the voice transmitted, however the gap is closing fast .
1.4.3 Economies of scale: Telecom is a huge fixed cost business; most of the costs go into installing and maintaining the network. The marginal cost of adding a new customer is very small. As a result, Providers with large subscriber bases enjoy a significant advantage over the smaller ones. 1.4.4 Customer Service: In this industry, although the customer contact with the firm is minimal, it is very critical and can define customer experience. Customer mostly comes into contact with the employees of the firm only during installation and service outages, the expectation of the customer is that the service be always available and the problems be immediately fixed.
1.4.5 Brand Name: Brand Name plays an important role for the customer choosing the service. In this Industry Bell and Cable companies have been able to build brand recognition over time, VoIP entrant however have to spend significant amount of money in advertising to be able to counter these strong brand…...

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