Internet Marketing

Mercer Study Looks at Market Potential for VoIP Communications

NEW YORK--(BUSINESS WIRE)--June 14, 2004--Mercer Management Consulting recently surveyed 1,000 telecommunications consumers in the U.S. and U.K. to determine the magnitude of the threat of VoIP (voice over Internet protocol) services to traditional telecom firms' profitability. business computer internet
What the consulting firm has learned from its study is that the potential for Internet voice communications services is indeed large, but only if they are designed and marketed to consumers very differently than they are today. The results of the study also could have implications for mobile phone service providers expecting to increase their share of calls made in the home.

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Mercer found in its research that the typical VoIP service of today, which is characterized by low cost as well as inferior sound quality and service reliability, appeals to a niche of highly price-sensitive consumers and technology geeks. However, the consulting firm has concluded that high quality, fairly priced service offerings from established providers like Internet service companies and mobile companies could capture as much as 30 percent of the residential voice market over the next three years - more than double the likely market share for the current low-quality offer.

A new study has found that more work needs to be done to make Voice over Internet Protocol (VoIP) line home phones.

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Voice over IP (voip) is one of the telecommunication industry's fastest growing markets. By 2010, voip subscribers are expected to more than quadruple, jumping from 10.3 million to at least 44 million. Voip.com's generous Affiliate Program is the perfect way to get involved in the voip revolution. With just a few simple steps, you can become an Affiliate and unlock the earning potential of this exciting, growth industry.

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Based on this and other survey findings, Mercer offers five observations for communications service providers looking to position themselves to capture share in the home phone market through VoIP communications: don't launch the service with inferior quality and reliability; don't make low call charges the cornerstone of your offer; be careful as to what costly features you incorporate in your offer; maximize the value of your existing customer relationships; and plan for local-loop unbundling while lobbying for number portability.

"When consumers first began purchasing travel over the Internet analysts touted huge growth potential for the space, and now those online transactions represent more than half of all travel sales, " commented Stacy. "The group travel market is the last frontier of the online travel industry and like the overall online travel market; we believe growth potential is enormous."

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According to Mercer's communications experts, the challenge for traditional telecommunications firms is to act now in order to develop a pre-emptive strategy that will protect their businesses. Acting now will allow these firms to avoid being left later with unpalatable options to stem a flood of customers to VoIP offers - options that the consulting firm has determined would cannibalize their own revenues more than they would damage the competition. The Mercer experts add that for those providers competing against the traditional firms, the key will be structuring the right offer. internet marketing specialist
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For an expanded summary of these survey findings containing additional data, visit the "For the Media" section of Mercer's corporate website, http://www.mercermc.com. agency internet marketing
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Patrick Pollino, 617-424-3828
Pat.Pollino@mercermc.com