With the increase in area codes, customers do not know when they pick up their phone whether that local call is free, a toll call, or perhaps being switched to the long distance carrier. When customers take the time to call their local carrier to ask about the rate for a particular call, the typical response is that the cost depends upon the caller's particular plan. But as competition in the local market heats up, rates will become very visible, compared to the buried costs that exist now. In fact, as area codes continue to proliferate the difference between a local call and a long distance call will continue to blur. The terms local and long distance may become obsolete especially as companies offer bundled services covering all calls.
Deregulation also prompts new entrants and consolidations.
Analysts predict more deals on the horizon, including another merger between Bells or a Bell take-over of some long distance carrier. This report will analyze industry changes and draw on primary and secondary data to evaluate the residential market's media habits and buying patterns. In addition, it is critical to understand how these demographics are changing if a company is to stay one step ahead by supplying these groups with the right products and services. This report will provide a better understanding of the consumer market by examining consumers criteria for selecting local and long distance telephone companies. Using primary research and other information, the report will measure the relative importance of price, bundling of services, perceived level of service and other criteria.