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Research and Markets: Need for Operators and Service Providers in PSTN to Be Creative in Packaging, Pricing and Marketing of Services.


DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com) has announced the addition of Consumer Telephony Packaging: The Push for Recurring Revenue to their offering.

Since the liberalization lib·er·al·ize  
v. lib·er·al·ized, lib·er·al·iz·ing, lib·er·al·iz·es

v.tr.
To make liberal or more liberal: "Our standards of private conduct have been greatly liberalized . . .
 of Europe's telephony market in 1998, the growth of competition in fixed-line telephony services has eroded the incumbents' share of switched voice, data and line subscriptions.

Most early domestic competition came from indirect access services, such as call-by-call, where customers redirected their calls over an alternative service provider's network but still paid the incumbent telco for the line rental. This had limited success due to the inconvenience of having to dial prefixes or install least-cost routers (i.e., boxes that redirect traffic to the cheapest carrier available).

A more recent and significant threat to telco dominance arose with the advent of carrier preselection (CPS), another form of indirect access that allows alternative providers to deliver services over existing telephone lines rented from the incumbents.

For some time, the telcos have witnessed the gradual decline of the mature voice market, which is under threat of displacement from newer services. The rapid growth of mobile during the last 5 to 10 years, combined with the recent broadband boom, has caused a loss of fixed-line subscriptions and a decline in domestic switched traffic.

Although the decline of dial-up voice services is the main precipitator of the weakening in the switched access market, the growth of broadband also presents further disruption in a number of forms:

- Broadband removes the need for secondary phone lines for dial-up Internet access See dial-up. .

- Broadband results in a loss of revenue from phone line usage charges where these are applied.

- Broadband facilitates increased Internet and e-mail activities that are displacing traditional telephone usage.

- Cheap Internet telephony and voice-over-broadband (VoB) services will cannibalize can·ni·bal·ize  
v. can·ni·bal·ized, can·ni·bal·iz·ing, can·ni·bal·iz·es

v.tr.
1. To remove serviceable parts from (damaged airplanes, for example) for use in the repair of other equipment of the same
 traditional PSTN (Public Switched Telephone Network) The worldwide voice telephone network. Once only an analog system, the heart of most telephone networks today is all digital. In the U.S.  telephony.

Despite its inevitable stagnation Stagnation

A period of little or no growth in the economy. Economic growth of less than 2-3% is considered stagnation. Sometimes used to describe low trading volume or inactive trading in securities.

Notes:
A good example of stagnation was the U.S. economy in the 1970s.
, the telcos recognize that the telephony market will remain their biggest revenue stream. The declining value of the switched access market will eventually be offset by the rising value of their broadband businesses, with DSL DSL
 in full Digital Subscriber Line

Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary
 displacing PSTN as the lifeline communications subscription service and major source of income.

In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified"
meantime, meanwhile
, broadband access ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average.  is declining and customers are not yet paying for content. So, although they see broadband as the major revenue stream for the future, most telcos continue looking for Looking for

In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with.
 ways to: (1) stem the loss of traditional telephony revenue and (2) retain their fixed-line voice services market share.

This study shows that there is still life left in the PSTN, but operators and service providers need to be creative in the packaging, pricing and marketing of telephony services.

For more information visit http://www.researchandmarkets.com/reports/c5084
COPYRIGHT 2004 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Sep 20, 2004
Words:438
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