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Minnesota Telecom Alliance Customer Service Conference April 8, 2010

Explore wireline and broadband trends impacting telcos, with insights on customer service and experiences driving the industry shift towards broadband services. Learn from experts about challenges and strategies for success in this evolving landscape.

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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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