Regain Lost Landline Revenue Through Global-IP Services And Innovative Services, Jajah To Telecommunications Companies.
MOUNTAIN VIEW, CA--(Marketwire - May 29, 2008) - JAJAH, the world's most innovative global communication company, released its Q2 Telecommunications Industry Issues Index today that identified that the biggest concern for global telecommunications executives is the loss of landline revenue and the threat of emerging IP-based competitors. The study also found that IP-based Value Added Services, international calling and new pricing strategies are seen as the best opportunities to replace lost revenue, though many companies have yet to clearly define their IP strategy.
To gain a deeper understanding of carriers' perceptions of the ongoing shift in the global telecommunications industry and to drive product development, JAJAH conducted delegate research at CTIA and in-person one-to-one briefings with chief-level executives at telecommunications companies in the U.S. and Europe. According to the JAJAH study, new networks, competitors and connectable devices are placing an unprecedented burden on global carriers as they try to remain central to their customers' "connected life."
Consumer behavior mirrors industry trends and pain points. A recent National Health Interview Survey conducted by the Centers for Disease Control showed that nearly one in six American homes (15.8%) had no home landline, and that nearly three in 10 households have only a cell phone or seldom, if ever, use their traditional phone.
Global carriers face a new style of competition where anytime, anywhere, interconnected voice and data services put significant strain on networks and product innovation. With domestic markets heavily penetrated, international markets will play a bigger role in future revenue and market growth. Whilst IP-based operators can enter markets with little or no infrastructure the JAJAH research shows many carriers remain without a go-to-new-market strategy.
Key findings from the Q2 Telecommunications Industry Issues Index include:
-- Landline churn: The biggest fear amongst fixed line telecommunications
companies is the loss of landline connections. Four out of five companies
put landline replacement revenue at the top of their agenda.
-- Value Added Services the savior? The majority of carriers rank the
addition of Value Added Services to their portfolio as a higher priority
than their network. Two-thirds of chief-level executives state Value Added
Services are the single most important factor for increasing customer
loyalty and revenue.
-- Talkifying the Web: It is unclear how to deal with the perceived
threat from "new-style" competitors, with two-thirds more concerned about
IP-based competitors than new triple-play competitors.
-- IP telephony strategy gap: Many companies identify significant room
for advancement in IP telephony strategy. Two-thirds stated IP telephony
represented the future of telecommunications and are looking to carrier-
friendly companies like JAJAH to partner with to quickly advance its IP
offering and IP backbone.
-- The future is international: International markets hold enormous
potential; Ninety percent expect significant revenue growth abroad, rather
than in domestic markets in the next five years.
-- Infrastructure investment black hole: With a lack of funding for
infrastructure investment, more than 60 percent of the executives
questioned believe they will outsource a greater proportion of
infrastructure development by 2009.
-- Triple play boom: Service expansion by telcos will lead to an increase
in triple play offerings in the U.S. and Europe in the next twelve months.
More than one-third of single and dual play companies plan to launch a
triple play offering within the next 24 months. Of those companies looking
to expand into IPTV, more than half will do so via acquisition.
Where once it was a race to lay pipes, JAJAH's report outlines the goals in the new battlefield -- Value Added Services, preservation of customer base and diversification of revenue.
"Service bundles, technology convergence, increasing global competition and decreasing margins are driving a major shift in the telecommunications industry," said JAJAH CEO Trevor Healy. "It is really encouraging that the biggest companies in the industry are embracing the concept of IP-telephony as a source of revenue protection and growth. With our open IP platform and managed services, JAJAH is working with a number of companies in the industry to help them embrace IP and turn competition into cooperation."
"Convergence has been the key word for the past decade, but now IP platforms are coming to maturity and many traditional organizations have yet to define their go to market strategy," said independent telecom analyst Jon Arnold. "As consumers crave new forms of communication and voice-bundled services, it's not surprising to hear many CEOs are putting these issues front and center. JAJAH's findings are a dramatic example of how under-prepared many companies are to deal with the industry shift."
JAJAH is partnering with technology companies, carriers, mobile and cable companies, including Yahoo!, eMobile and Deutsche Telekom, to provide a range of cutting edge IP telephony solutions. JAJAH's managed services platform helps its strategic partners stay at the forefront of global communications and provide their customers with simple and efficient new services. These partnerships, strengthened by its growing base of 10 million customers across 200 countries, confirm JAJAH as the world's leading open and scalable IP telephony network.
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