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Minnesota Telecom Alliance Customer Service Conference April 8, 2010

Minnesota Telecom Alliance Customer Service Conference April 8, 2010. Dave Kunde. SVP & General Manager Integra Telecom. Agenda. Wireline Trends Broadband Customer Experience. Wireline Voice Trends. Drivers of Change Choices Competition – LNP Price Bundling Wireless Replacement

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Minnesota Telecom Alliance Customer Service Conference April 8, 2010

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  1. Minnesota Telecom Alliance Customer Service Conference April 8, 2010

  2. Dave Kunde SVP & General Manager Integra Telecom

  3. Agenda • Wireline Trends • Broadband • Customer Experience

  4. Wireline Voice Trends Drivers of Change • Choices • Competition – LNP • Price • Bundling • Wireless Replacement • Expanded coverage • Clarity? • Economic choices • 1985 = 340,000 cell phone subscribers in the U.S. • 2009 = 290,000,000 cell phone subscribers in the U.S. • VOIP • IP Calling Platform

  5. Wireline Voice Trends

  6. Wireline Voice Trends AT&T • Lost 990,000 primary phone lines in 3Q08 • Access Line loss was 10.9% year over year Verizon • Lost 2.9M residential access lines in 3Q08 • Total access line loss was over 9.0% Source: Telephony on-line 4/28/08

  7. Wireline Data Trends • Quality and Capacity • Pushing FTTH & FTTC • Higher Speed Data • Mining for Copper

  8. Broadband Trends • 75% AT&T’s U-verse TV subscribes have a triple or quad play option • AT&T IP data revenue grew 7.3% • IPTV dependent on a broadband IP connection to deliver their full experience • Data revenue is replacing wireline voice revenue Source: www.lightreading.com

  9. Rural Broadband Trends • Rural Markets experienced a 16% point increase in broadband penetration from Q207 to 2Q09 = Fastest growing geographic market in the nation • Rural broadband usage = 75% vs. the national average of 89% • Stimulus Program = $7.2 billion for rural broadband expansion Source: www.internetworldstats.com

  10. Broadband Trends Twice the Growth

  11. Broadband Trends Internet Global Sites

  12. Customer Experience • A typical dissatisfied customer will tell 6-10 people about the problem.  A typical satisfied customer will tell 1-2 people. • It costs 6 times more to attract a new customer than it does to keep an old one. • Of those customers who quit, 68% do so because of an attitude of indifference by the company or a specific individual. • About 7 of 10 complaining customers will do business with you again if you resolve the complaint in their favor. • If you resolve a complaint on the spot, 95% of customers will do business with you again.

  13. Customer Experience • Customer Service • Customer Service is an organizational function • Customer Service is an important component of the customer experience • Customer Experience • The perception that customers have of their interactions • Competitive pricing, fast delivery, local presence, reliable

  14. Summary • Telcos are Becoming Broadband Companies • The Biggest Pipe Wins • Customer Experience is Key

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