Price Cuts Affecting Data Services Business

March 2005
Business Communications Review;Mar2005, Vol. 35 Issue 3, p6
Trade Publication
This article focuses on price cuts in the U.S. markets. The market research house predicts one exception: Internet access services. In-Stat/MDR projects that the price cuts will outweigh increased use of data services. Among other findings, the researchers project that private lines will still account for a large share of data services spending, but that this figure will fall below the 50 percent mark by 2008. Besides the price pressure, carriers face another challenge, according to In- Stat/MDR: Service offerings are more fragmented: "Carriers are now facing the prospect of having to offer 12-20 services to generate the same [customer] expenditures that 6-12 services would have drawn in the past."


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