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Competition in the deregulated telecommunications industry / by Vivek Kumar.

by Kumar, Vivek.

Telecommunication

Deregulation -- United States -- History

Customer services

vi, 132 leaves : ill. ; 29 cm.

Advisor: David Tietyen.

Introduction -- Telecommunications industry overview -- Competitive analysis -- Historical overview of the telecommunications deregulation -- 1996 Telecommunications Act -- In retrospect with deregulation in the airline industry -- Market environment and product introduction -- Strategies deployed towards convergence -- Customer service as a competitive advantage -- Conclusion -- Recommendations -- Appendix A) Five types of ASP offerings that emerged B) Uses for high - impact CRM C) Some next - gen OSS and CRM /E - CRM solution providers.

The passage of the Telecommunications Act of 1996 has spawned a new era in the communications industry that is bound to transform the way the world communicates and conducts business. The Act’s basic premise is to increase competition in the industry by easing the Federal Communication Commission’s (FCC) control. The increased competition is to deliver customers with enhanced products and services at competitive prices. Most telecommunications service providers have resorted to various strategies to gain and retain market share from one another.

This paper elaborates on the key phases of deregulation faced by the telecommunications industry and compares it with the airline industry. Based on the comparison, a few significant predictions suggest that the telecommunications industry is heading towards an oligopolistic competition model.

This thesis looks into the various strategies deployed by the players in the hyper-competitive telecommunications marketplace. Most strategies have been the traditional mergers and acquisitions, strategic alliances, new product development, and integration of solutions that primarily focus on the convergence aspect of the products and services offered.

This thesis also identifies that a few technologies may be helpful in providing exceptional customer service, time and time again. Most service providers also need to examine the different technologies, such as DSL, VPNs, ASP, Broadband Wireless, and Optical Networking, which are being deployed in the marketplace so that they can provide the most effective solutions to their customers.

Today, convergence is the key focus in technologies and services. Even though, customers’ voice, data, and video needs are trying to be met on a single platform, research claims that customers are demanding a one-on-one market relationship from their product/service providers. In simple terms, the customers are demanding for customized solutions that fit their needs. Therefore, the marketing world is experiencing a period of divergence.

Another revolutionary concept learned during research is “Creating a community of Customers.” This thesis highlights the importance and benefits of this valuable concept that should be adapted by service provider to leapfrog their competitors in the marketplace.

Several researchers have identified customer satisfaction and loyalty as the primary drivers of increasing market share and, hence, increased revenues and profits. Even though most telecommunications firms realize that customer satisfaction and loyalty as the key to their success, they have not been successful in devoting enough resources in this area. Most service providers are deploying Operations Support Systems (OSSs) to streamline their processes and improve operational efficiencies.

The service providers need to look beyond this short-term fix, and, hence, experiment with Customer Relationship Management Systems (CRMs). CRMs are applications designed to help organizations understand their customers’ behavior and needs. Providing superior customer service eventually leads to customer satisfaction, loyalty, and that results in probable long-term retention.

The thesis study concludes that most service/product providers and technologies are converging to provide a simple platform for information sharing. However, the service providers are not necessarily focusing on the customers’ specific requirements. Instead, they are keen in providing boilerplate solutions. Increasing customer specific demands and different behaviors will require service providers into looking into flexible solutions such as Operations Support Systems (OSSs) and Customer Relationship Management (CRM). These solutions, when integrated and implemented effectively, will enable the service providers to be more nimble and responsive than their competitors, hence, providing more value to all stakeholders in the business.

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