Profit margins are low with long distance rates dropping over the last five years. There is little to offer in terms of new products and services in this market. While growth is minimal and revenue somewhat vulnerable in the long distance market, this product is essential to the one-stop shopping concept that many communications companies see as the Holy Grail. The Internet is seen as the number one growth market in the communications industry. As an LEC-ISP, SBC has a tremendous opportunity in this 1 billion a year market.
Internet telephony is a market that offers opportunity to ISPs.
It remains relatively inexpensive to date, but will eventually fall subject to capacity build-up costs and possible usage charges in the long term. Wireless Internet connections offer great savings under these restrictions. Electronic commerce is a growing product in the Internet environment, which offers great opportunities. Its results are outstanding in terms of marketing new products. It is known for its tough posture with regulators and competitors.