What is driving these numbers? To begin with, it’s now very easy to enter the market. Ten years ago, a would-be service provider had to have significant technical networking expertise and make a substantial upfront investment in network infrastructure. But now, everything is scalable and available via a platform. You can launch a viable business with relatively little capital and few customers.
Second, there are 30 million small businesses in the U.S. The majority still rely on a traditional telco or cable company for their network services, making them targets for next generation service providers.
But for individual service providers, these factors pose challenges. If it’s easy to enter the market, that means competition is intense. And telcos do not give up their best customers without a fight. There will always be someone out there with a better promotional offer or a lower price.
In other words, it’s not enough to acquire customers. It’s all about Network Agility. Service providers need to deliver outstanding service – cost effectively -- to retain customers, and improve their efficiency to reinvest in new products and services.