New Revenue And Profit Opportunities For VOIP Providers

How to generate new recurring revenue from higher-value, higher-margin managed services in about 45 days.

Commoditization is the bane of any successful product or service category. Once customers see options, providers are forced to compete on price or risk going out of business. This is exactly what is happening in the VoIP market.

“There’s a lot of competition out there, and since many Unified Communication (UC) platforms are similar, price becomes the best way to close deals,” said Jon Arnold, principal at J. Arnold & Associates, an indepen- dent IP communication analyst and consulting agency.(1)

Rather than competing on price and chasing dwindling margins with “me too” offerings, many VoIP providers are adopting a radically different business strategy. They are evolving, differentiating, and diversifying. With a flash of innovation, they are zigging while others are sagging. What’s their secret?

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