June 6, 2007

Telecom Bundles Are Required, But They Are Not Enough To Address The SMB Market

This is the second document in the "2007 SMB Telecom And Networking Trends" series.

by Michele Pelino

with Eric G. Brown, Robert Muhlhausen

Executive Summary (This is a document excerpt)

Bundled communications services that combine local and long-distance voice, Internet access, and mobile voice are big hits among small and medium-size businesses (SMBs) in North America. Our 2007 SMB Network And Telecommunications, North America And Europe, Q1 2007 Survey results show that nearly 75% of North American SMBs currently subscribe to some type of bundled service. Buyers like the lower cost and single source that these deals bring. Telecom marketing executives like the long-term commitments that these contracts require; but, how can they grow the business even more after that? Offering SMBs additional value-added services, including software-as-a-service (SaaS), email, Web site hosting, and security services, is one way to increase revenue streams and further lock in SMB customers in specific markets.

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