Tuesday, August 03, 2010

Landline Losses

The Miami Herald points out the landline losses of the big 3 telcos in Florida -- over 1 million lines in Florida. At even $20 per month that's a quarter billion in revenue.

Jon Arnold asks if the telcos are giving up on landlines? I don't think telcos are giving up, I think they are just losing because they don't know how to compete. Years of monopoly mentality (Bell-head thinking) has taken its toll. Plus when you are laying off tens of thousands each year, how productive and creative will the rest of your staff be as they wait for their pink slip?

"By conceding wireline to cablecos they have lost the foundation of their traditional relationship with millions of households, and it's hard to see how they can win this back." This is a great point. Just like your dial-up subs and DSL subs. Once they are gone, you can't get them back. But were you doing anything with them to make them sticky? To add Value? Probably not, so it became about price - and you lose that battle.

Notice, while they talk about cellco replacement and cable's voice gains, there's no talk about a 3rd party outside the duopoly. Not Skype, Vonage or any of you guys.

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