[ service_innovation strategy ] prev next
Restoring Growth: Moving Voice from Commodity to Convenience
Carriers are fighting declining voice revenues in two ways: service bundling by wireline carriers, and a transition by wireless carriers to data services. Bundling is a positive, but defensive, play to delay revenue erosion. More open carrier business models could restore voice revenue growth.
- Bundling alone, while accretive to ARPU, will not restore growth in the core voice franchise
- Avoiding the failures of the past in “enhanced services” is now possible with cheaper, simpler technologies, “convenience” features and a marketplace model which levers existing carrier assets at low cost
- For a typical wireline carrier, convenience services could add as much as $500M annually in high-margin revenue.
Download this article:: RestoringVoiceGrowth.pdf [480.8kb]
1 November 02