Market musings

When All You've Got Left is a Slow Long Death

by Jason Kerr
October 25, 2016

What do you do when everyone has a phone, when voice is free, and when data is getting cheaper by the day?  When you spend billions on infrastructure only to have WhatsApp, Skype and others simply steal your subscribers with a cheap OTT app?

You try to remain relevant to your customer, you try to be 'sticky' - you try to get your customer to remember a time when they needed you, when being a Telco was king.

So if your customer no longer values your confusing pricing plans, they don't care about your rollover minutes, when everyone offers loads of data, and "can you hear me now" is no longer a question, then customers wont care if their telecom provider is Verizon, AT&T, T-Mobile or two tins and a piece of string.

So how does the modern Telco conglomerate retain it's customers?

Well, Verizon and AT&T are betting that the answer to these questions is that you'll care more about Game of Thrones or reading interesting content, than you will about saving a buck by switching plans to the other guy.

Recently we've seen Verizon buy Yahoo! for $4.8B (and The Huffington Post), and AT&T buy Time Warner for $85.4B - all in a bet that you love Orange is the New Black more than you love saving $1 or two.

Do you?

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