To be successful going forward in voice and data communications, companies must be able to integrate the cost benefits of VoIP wire line carrier transmission with cellular/mobile end-user voice and data product suites. E.G., AT&T, COX et al are bundling offerings to increase conglomerate market share. Wireless and Wire line service offerings – previously, large corporations have spent billions of dollars expanding their PSTN network. As mobile and cellular technologies became available (and dominant) additional investments were spent creating the second stage of telecommunications. Today, trends are foretelling the final tale in these under-connected technologies. With the introduction of mobile data communications such as 8.02.11 (Wi-Fi) and 8.02.16 (WiMax), the Next Generation Networks (NGNs) will begin to support both data and voice communications, to a wireless end-user, while taking advantage of the cost-effective VoIP network backbone. Smart Phone carriers have already successfully integrated a VoIP/Wireless package for this product-type powerhouse.
These companies also must be able to saturate their combined products suites into the international origination retail marketplace. As we have seen in the US domestic marketplace, companies are offering bundled services to customers, including:
- Enhanced voice products that are easily integrated into a VoIP switching platform such as voicemail, conference calling, international toll-free, and the personal secretary (follow me number)
- Integration of voice and data products together such as 802.11 wireless hot spot services, local phone services, and cellular (CDMA, GPS) subscriptions.
- Initiatives with strategic partners
A key driver to ride this momentum is the ability to penetrate the market with affordable voice services, then maximize product suites with customer up-sell, using the Internet for advertising, provisioning, and selling, eliminating large personnel infrastructures that have, in the past, proved to be too costly for the PSTN Contribution model shrinking gap. In addition, these marketing plans can be handled virtually from one corporate operating entity, for each geographic/ethnic market segment.
Finally, success will be contingent on companies familiarity with the sensitive balance between Revenues and associated Cost Minutes of Use (CMOUs), while building and maintaining a low-cost ongoing capital expense network.
- Revenue vs. Cost Minutes – Although Operating Margins will continue to decrease by MOU, these declines will be offset by the strong demand for wireless data and voice services, both standard and enhanced, worldwide. The addition of wire line and wireless customers in the less developed countries will gain huge market segment and will produce high Revenue dollar figures until the international accounting recalibration of the industry in these “start up” markets.
Building a low-cost enhanced service network. While VoIP networks have rendered old business models obsolete, it is expected to drive down the cost structure of providing service. By building a MPLS access network for VoIP, Telecom Engineers, Operators, and Technicians are now located virtually, significant reducing operating costs and initiating an increase in service quality. Because large domestic providers have billions of dollars invested in PSTN networks. Understanding that cost reductions will be a necessity to stay competitive, migrating away from PSTN networks to VoIP will produce a large dilemma of instigating and executing an expense plan, with a result in reduced revenues. RBOC and telephone carrier leaders seem to be slightly behind the curve of independent players who are building their model on the future, instead of the past. How these large conglomerates handle this transition and these financial challenges will foretell their viability and future. Simply put tomorrow’s phone company will not be your parents’ phone company.