Strategy Paper for Overcoming DTAG Market and Technology
Advantage
This paper was created for a venture capital company and
subsequently used to target cable accessible markets in
Germany. The paper has been parsed in this forum to
separately cover Digital TV, Broadband Data, Video on
Demand, Telephony, Interactive TV, Gaming and Colocation.
TELEPHONY
Telephony is another DTAG strongpoint. However, telephony
has the potential to be just as ubiquitous a service within
the enterprise as cable tv. Telephony in the form of Voice
Over IP (VOIP) should be offered by the enterprise to
residential and business customers. The enterprise can
offer telephony cheaper than, quicker and with more bells
and whistles than DTAG.
My strong suggestion is to take DTAG's market share by
offering better value. Value is measured by customer
costs+options+customer satisfaction+enterprise costs=value.
The same DTAG arguments offered in the Broadband Data
section of this document, hold true in Telephony also.
Using agreements with bandwidth providers and reciprical
agreements with LECs, the enterprise can compete with DTAG
by:
1. Offer lower monthly basic fee
2. Inter-cable area calls are free
3. Reduced cost on international calls
4. Reduced costs on DTAG and mobile calls.
Through legislation, the enterprise must insure that DTAG
is withheld from offering predatory pricing. In addition,
the enterprise should approach the Bundestag for telephone
tariff legislation allowing it to charge more money to
carriers who connect to it to complete calls, than it pays
to carriers to complete it's calls. The EU precedent for
this has already been set in Belguim.
Much of the infrastructure needed for Telephony is also
needed for Broadband Data and VOD, hence costs can be
amortized across systems. The enterprise should also study
whether call centers, help desks, etc. would subscribe to
an outsourced call routing system comparable to commercial
ACRs with queues. Telephony options (through technology)
can then be offered to business consumers and used as a
profit center.
The technology needed for this is conventional telephony
(SS7, SPDs, etc.) for DTAG and other pure POTS type of
carriers, and VOIP in order to take advantage of the lower
costs offered by this technology. The technology for POTS
and VOIP operations is reliable, cost effective and widely
known outside of Germany.
Extraordinary costs entailed would be for marketing,
consumer awareness, consumer education and sales. Bundling
this product with cable tv, and using existing cable
consumer notification processes would somewhat lower
customer acquisition costs.
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Sean DAniell is a internationally seasoned I.T. executive
with highly effective technology and organizational
management experience that increases profitability. Mr.
DAniell has extensive experience in creating, managing and
guiding thriving, successful startup and Fortune 500
technology departments.
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