The passage of the Telecommunications Act of 1996 will result in service providers flooding into both the interchange and local exchange markets in the very near future. In preparation for this vast operator services and card calling market growth, both current and future market players must take proactive measures to retain their existing customers and to establish new customer bases within the market.
According to recent strategic research by Frost & Sullivan (), U.S. Operator Services and Card Calling Markets are expected to grow from $14.5 billion in 1996 to $22.7 in 2003, with a compound annual growth rate (CAGR) of 6.7 percent. This in-depth analysis of the market is divided into two segments: the interexchange carrier (IXC) operator services and card calling market and the local exchange carrier (LEC) operator services and card calling market. The IXC Segment is then further divided into domestic and international subsegments to ensure the closest possible examination of all aspects of the market.
The operator services and card calling market is currently being revitalized by prepaid calling cards which will later be joined by higher technology “smart cards.” Some major trends within the expanding market include continuing automation of the operator services industry leading to decreased labor and switching equipment costs for service providers, and the imposition of rate caps on operator services by state authorities preventing exorbitant fees and lowering revenues for the operator services market, according to Frost & Sullivan’s Telecommunications Industry Manager Larry Herman.
This research U.S. Operator Services and Card Calling Markets includes a representative sample of 136 companies currently in the U.S. operator services and card calling market, out of more than 1,000 companies currently competing in the market. Also included are ways competing market players can strategically, and wisely, adapt or redirect their present resources into these flourishing markets. In providing an objective overview of the entire operator services and card calling industry, four end-user categories are highlighted by industry: hospitality, institutional, pay phone, and residential and business customer.
AT&T, MCI, and Sprint dominate the IXC services market. Combined they hold more than 85 percent of the market for domestic interexchange services and over 95 percent of the market for international interexchange services. Thus leaving more than 1,000 competitors to compete and account for the remainder is the revenues in the market. So how will these companies succeed?
“It is clear that as a result of the passage of the Telecommunications Act of 1996, many providers in the interexchange and local exchange markets will enter both markets,” says Herman. “To compete effectively in this deregulated environment, service providers need to take proactive measures to retain their existing customers for operator and card calling services and establish new customer bases in markets that they are entering.”
This telecommunications industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market.
The technologies reviewed include signaling system #7, billing validation application (BVA), advanced intelligent network, automatic number identification (ANI), dedicated access, switched access, fiber optics, smart card technology, dialaround, voice activated calling cards, prepaid calling cards, and automated operator services
Market Participants include: Ace Telephone Association, Adams Telephone Co-Operative, Advanced Lightwave Communications, Inc., Albany Mutual Telephone Association, Aliant Communications Company, ALLTEL Corporation, Americall Enterprises, Inc., American Telesource International, Inc. (ATI), Ameritech Corporation, AMNEX, Inc., AT&T Corporation., Bell Atlantic Corporation, BellSouth Corporation, Benton Cooperative Telephone Company, Blackduck Telephone Company, Brooks Fiber Properties, C-TEC Corporation, Cable & Wireless, Inc., Cascade Operator Services, Inc. , Century Telephone Enterprises, Inc., Chautauqua Erie Telephone Corporation, Cincinnati Bell, Inc., Citizens Utilities Company., ClearTel Communications, Coastal Telephone Company, Coastal Utilities, Inc., Communications Services of Colorado, Concord Telephone Company, Consolidated Communications, Inc., ConQuest Telecommunications Services Corp., Crosslake Telephone and Cablevision Company, Davel Communications Group, Denver and Ephrata Telephone and Telegraph Company, East Otter Tail Telephone Company, Easton Telephone Company, Elcotel, Inc. , Equity Pay Telephone Company, Inc., Excel, Inc., Executive Telecard, Ltd., Fairbanks Municipal Utilities System, Farmers Telephone Company, Federated Telephone Cooperative, Fone America, Inc., Frontier Corporation., Garden Valley Telephone Company, GST Call America Business Communications, GST Telecommunications, Inc., GTE Corporation, Gulf Telephone Company, Hamilton Telecommunications Company, Hancock Rural Telephone Corporation, Hargray Telephone Company, Harmony Telephone Company, Horry Telephone Cooperative, Inc., Hospitality Communications Corporation, Hutchinson Telephone Company, ILD Teleservices, Interstate Telecommunications, Inc., ITC Holding Company., Johnson Telephone Company, Kasson and Mantorville Telephone Company, Lakedale Telephone Company, LCI International, Link USA, Inc., Madelia Telephone Company, Mankato Citizens Telephone Company, MCI Communications Corporation, Network Operator Services, New Hope Telephone Cooperative, Inc., NTS Communications, Inc., NYNEX Corporation, Oasis Communications, Inc., ONCOR Communications, Operator Service Company., Opticom Operator Services, Pacific Telecom, Inc., Pantel Communications, Inc., Park Region Mutual Telephone Company, Paul Bunyan Rural Telephone Cooperative, Peoples Telephone Company, Inc., Peoples Telephone Cooperative, Inc., Phoenix Network, Inc., Pine Belt Telephone Company, Inc., Polar Communications, Procom, Quest Group International, Inc., RL Telecommunications, Inc., Rock Hill Telephone Company, Roseville Communications Company, Runestone Telephone Association, SBC Communications, Inc. , Smart Choice Long Distance, Inc., SmarTalk Teleservices, Inc., SmarTel, Inc., Southern New England Telephone (SNET), Sprint Corporation, Standard Telephone Company, Start Technologies, Inc., TDS Telecom, Tel Advantage America, Inc., Tel Call Communications, Inc., TeleKey LLC, Telephone and Data Systems, Inc., Telephone Service Company, Teleport Communications Group., Teltrust, Inc., Toledo Telephone Company, TotalTel, Twin Valley-Ulen Telephone Company, U.S. Long Distance Corporation, U S WEST, Inc., Valley Telephone Company, Vartec Telecom, Inc., WATS International Corporation, WCS Long Distance, Westel Communications Services, Winthrop Telephone Company, Wolverton Telephone Company, World xChange Communications, World Telecom Group, Inc., and WorldCom, Inc.
Frost & Sullivan is an international marketing consulting company that monitors the environmental technologies industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #2696-63, U.S. Call Center Service Markets, and to support industry participants with customized consulting needs.
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