Many telcos view themselves as partners with small businesses, helping them become more productive through the use of telecommunication services and other benefits. Their offerings aimed at the small business market include:
Productivity increases through emerging technologies;
Bonus discount programs;
Single simplified billing for bundled services;
Dedicated sales/support service representatives;
Rewards and loyalty programs; and
Bundled and discounted service offers.
Small businesses are increasingly taking advantage of technology and support services. Personal computers, fax machines, laser printers, Internet access, scanners, cellular telephones, and other telecommunication services provide powerful and inexpensive ways to work independently, yet stay connected to the world from a home office, small business, or virtually anywhere. The common availability of sophisticated technology that was previously only affordable in a corporate environment has leveled the playing field between big and small companies. Technology basically makes the size and location of an individual’s operation essentially invisible. Vast amounts of information are accessible at one’s fingertips and the ability to create virtual partnerships provides opportunities for competition based on the quality of work and price. To reach the growing home-based and work-at-home segments, telcos need to rethink and revamp both their real and virtual retail channel strategies.
In 2000, Insight estimates small businesses will spend $88 billion for telecom products, enhanced services, and Internet access. That figure will increase to $122 billion by 2005, representing a compound annual growth rate (CAGR) of 6.8 percent. Enhanced services include call answering, call waiting, conference calling, call forwarding, caller ID, 800/900 services, and paging.
Communications companies serving the small business market must understand and appreciate its complexity. Even as the small business markets’ importance increases relative to the general economy, its composition changes, reflecting back our society’s changing appearance. The richness of diversity represented by the small business market will be a significant revenue opportunity for those companies that can meet its needs.
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