The residential telecommunications market in the United States is in the midst of tremendous change. The incumbent wireline carriers face a major competitive challenge in their core voice business from the cable television network operators, which will use a triple-play bundle of voice, video, and high-speed data to gain market share.
This report analyzes how the incumbent carriers can most effectively respond to this challenge. It focuses on two aspects of the carriers’ situation: Network modernization and service differentiation.
As they formulate their network modernization strategies, the carriers must decide how best to upgrade their infrastructure so it is capable of delivering entertainment-quality video. Should they replace their current copper local loop plant with fiber to the premises, or could other approaches provide most of the same benefits at a lower cost?
Defining the right services strategy is also essential. Will the carriers’ addition of video to their existing offerings be enough of a response to retain subscribers when competition from the cable operators intensifies?
This report makes the case that the carriers should do more than match the cable triple-play bundle. Instead, they should integrate wireless service with wireline voice, video, and data, thus offering consumers a quad-play bundle that will provide a superior communications product.
This bundle will need to go beyond providing discounted pricing to customers who purchase more than one service, however. The carriers must create an integrated environment that enables customers to access a broad range of advanced features in a way that is independent of which network they are using and what device they are using to access is independent of which network they are using and what device they are using to access it.
To obtain printed copies, please contact your nearest
PwC office.
Publications Search Page
