September 19, 2007

Benchmark 2007: Telecom

The Home Voice Market Gets More Crowded

This is the sixth document in the "State Of Consumers And Technology: Benchmark 2007" series.

by Sally M. Cohen

with Charles S. Golvin, Heidi Lo, April Lawson

Executive Summary (This is a document excerpt)

Telephone companies' landline voice services are under attack from cable voice, VoIP, and, most of all, mobile. Consumers express their priorities with their wallet: Household spending on mobile voice, TV, and Internet access continues to rise, while residential landline voice remains relatively stable. Early Adopters — the leading edge of consumers — are leading the trend toward choosing mobile and VoIP over traditional telephony. To compete, telcos must go head-to-head with their cable competition across the service bundle, but consumers aren't all that interested in telco TV. Instead of aiming to run with the pack, telco marketers should look to differentiate based on the strength of their service offerings.

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