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New technologies make it possible to transform
the telecom business model––which traditionally emphaszed horizontal services
and carrier control of networks––to a vertical focus that is more customer-
rather than carrier-centric. Such a shift can come about in part because the
corporate customers that buy telecommunications services from providers are
looking for ways to differentiate their products and services, by being better,
or faster, or of greater value, and are turning to telecom to achieve this
goal.
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Insight sees four major forces driving changes
in the basic structure of the US telecom industry, impacting vertical industry
marketing orientation:
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Deregulation is forcing telecom providers to compete in many technological and
geographical areas simultaneously. While the incumbent local exchange carriers
(ILECs) continue to have a lock on most local residential markets, enterprise
telecom customers have had a real choice of local, long distance, and Internet
service providers (ISPs) for some time now.
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Consolidation among the carriers and increased bundling of local, long
distance, Internet, wireless, and other services provides new revenue sources
for providers, but also tends to blur any perception of differentiation among
the carriers.
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Bundled service packages are gaining acceptance. An issue of Telecom Business
stated that 66 percent of businesses and 63 percent of consumers in one study
were interested in purchasing a service bundle of telecom and data services,
with at least two services included in that bundle.
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Service offerings, such as frame relay (FR) and data virtual private networks
(VPNs), as well as new network capabilities, such as voice-over-packet and
customer network management (CNM), are significantly altering how enterprises
work with carriers to find solutions to their particular problems.
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