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RLEC Problem or Opportunity?

A recent study talks about the declining aspects of rural exchange carriers (RLEC) business models. Specifically, the analysis looks at the mix of voice and data products and how RLECs are finding themselves at a disadvantage.

Is this a problem or an opportunity?

According to the study, RLECs are faced with continued consolidation of their industry and threats of “takeover” from the larger, established telecom providers. However, I see this situation as an example of the point that I raised in my recent article.

If smaller telecoms can utilize existing information about their customers via business intelligence (BI) or about their business processes via business activity monitoring (BAM), they can create and operationalize niche business models. An example would be the customer loyalty-based pricing models from Qwest and O2. These organizations have decided to compete on a customer loyalty aspect rather than directly against Verizon or AT&T.

Technorati Tags: , , , , , , , , Rural Exchange Carrier, RLEC

  Posted by jmyers on October 19, 2007 8:00 AM |

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