Wireless Providers Gain Ground On Wireline Services: Report

A new report by Deloitte has found that wireline providers are becoming increasingly threatened by wireless services due to technology advances allowing for increased wireless bandwidth.

July 8, 2005

1 Min Read
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A new report by Deloitte has found that wireline providers are becoming increasingly threatened by wireless services due to technology advances allowing for increased wireless bandwidth.

The report suggests that along with increasing their bandwidth, wireless providers should follow new strategies to compete with wireline providers. Theses strategies include:

  • Meeting the needs of mass-market local telephony users rather than focusing on high-usage corporate customers.

  • Investing in and promoting wireless as a substitute for local wireline voice.

  • Marketing to non-traditional customers who are the least profitable and demanding, such as those who do not require precise sound quality or have specialized uses for WiFi technologies.

The study asserts that conventional strategies will not work, which typically include focusing on the largest and most lucrative markets. It adds that history has shown that often the most profitable groups are unexpected and overlooked. A potential cause of this, it says, is due to the "Disruption Theory," which states says disruptive innovations may be inferior in terms of traditional performance measures but offers other benefits that appeal to new or less demanding customer segments.

If wireless providers use the right tactics, they will steal the growth in the wireline market and eventually penetrate its established base of customers, says the study.National managing partner of Deloitte's U.S. Technology, Media, and Telecommunications Group Phil Asmundson said in a statement, "The question is not when wireless service will be as good as wireline. The question is when wireless will catch up with the actual needs of mainstream wireline customers?"

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