Analyst: Multiple technology substitution risk increasing for telcos

Are telcos only focusing on the tip of the iceberg when it comes to landline voice decline in favor of VoIP or mobile substitution? An emerging theory from Eclicktick Consulting analyst Alistair Davidson suggests as much. Davidson says in a Telephony story that telcos may not realize that consumers often are experimenting with cheaper substitute technologies and the combination of applications that can be used with them for a period of time before they cut the cord on their original more expensive services.

The telcos may underestimate the impact of a substitute technology they view as inferior because they are not seeing the greater value consumers gain through multiple "amplifying" technologies and solutions that eventually replace the original service. This challenges the theory that ending traditional landline service is all about the vastly cheaper cost of VoIP, and thus may hint at a deeper crisis for traditional telcos who fail to understand customer behavior.

For more:
- Telephony has this story

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