Comments on: Aggravating Customer Service is Troubling in Competitive Times http://www.telecompetitor.com/aggravating-customer-service-is-troubling-in-competitive-times/ Providing insight, analysis, and commentary on the evolving telecom competitive landscape Thu, 11 Mar 2010 21:55:40 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: Fred Pilot http://www.telecompetitor.com/aggravating-customer-service-is-troubling-in-competitive-times/comment-page-1/#comment-485 Fred Pilot Wed, 06 Feb 2008 19:33:30 +0000 http://www.telecompetitor.com/aggravating-customer-service-is-troubling-in-competitive-times/#comment-485 Competition is constrained in the telecommunications industry because there are few providers. The industry is at the very least an oligopoly and for most customers, a duopoly that gives consumers the choice of either a telco or cable company. And for all too many of these, it's a monopoly since only the telco or the cable company -- but not both -- offer the services demanded by consumers. It's no wonder that product innovation, value and customer service take a back seat since unlike other service industries that have many providers competing against each other for market shares, there are very few. The primary reason for this market situation is the cost of building telecommunications distribution infrastructure is so high that only well capitalized players can afford to enter the game. In sum, we presently have the worst of both worlds: a vital service provided by private sector vendors free of true competitive market-based checks and balances that's not held accountable to customers and the public interest and which behaves more like governmental bureaucracies than private sector vendors. Competition is constrained in the telecommunications industry because there are few providers. The industry is at the very least an oligopoly and for most customers, a duopoly that gives consumers the choice of either a telco or cable company. And for all too many of these, it’s a monopoly since only the telco or the cable company — but not both — offer the services demanded by consumers.

It’s no wonder that product innovation, value and customer service take a back seat since unlike other service industries that have many providers competing against each other for market shares, there are very few.

The primary reason for this market situation is the cost of building telecommunications distribution infrastructure is so high that only well capitalized players can afford to enter the game.

In sum, we presently have the worst of both worlds: a vital service provided by private sector vendors free of true competitive market-based checks and balances that’s not held accountable to customers and the public interest and which behaves more like governmental bureaucracies than private sector vendors.

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