Minnesota Telecom Alliance Customer Service Conference April 8, 2010.

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Transcript of 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 TrendsDrivers of Change

1.Choices– Competition – LNP

2.Price– Bundling

3.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.

4.VOIP– IP Calling Platform

Wireline Voice Trends

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

Wireline Data Trends

• Quality and Capacity

•Pushing FTTH & FTTC

•Higher Speed Data

•Mining for Copper

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 revenueSource: www.lightreading.com

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

Broadband Trends

Providers Total 2Q09 New Subs 2Q09 Change %Cable companies 38,005,172 249,471 0.66%Telephone companies 31,897,117 384,488 1.22%Total Broadband 69,902,289 633,959 0.92%

Internet Broadband Subscribers in USASubscriber Statistics - June 30, 2009

Source: Leichtman Research Group, Inc., June 30, 2009

YEAR POPULATION USERS % POP.2000 281,421,906 124,000,000 44.1%2001 285,317,559 142,823,008 50.0%2002 288,368,698 167,196,688 58.0%2003 290,809,777 172,250,000 59.2%2004 293,271,500 201,661,159 68.8%2005 299,093,237 203,824,428 68.1%2007 301,967,681 212,080,135 70.2%2008 303,824,646 220,141,969 72.5%2009 307,212,123 227,719,000 74.1%

Source: Nielsen Online

Internet Usage & Population Growth

Twice theGrowth

Broadband Trends

Internet Global Sites

USERS Y/Y Growth Comments

445 Million 35%

390 Million 153%

55 Million 1171%

#2 site in global minutes, #2 global search engine

#1 site in global minutes, 6 billion minutes spent on Facebook each day

Real-time micro-0broadcasting, 5K tweets per second

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.

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

Summary

• Telcos are Becoming Broadband Companies

• The Biggest Pipe Wins

• Customer Experience is Key