It pays to keep an eye on competitors in close range for other reasons as well. If you don't offer new services, it's only a matter of time before your customer base erodes. Break-Even Realities To retain this customer base, many telcos are rolling out new services even if they only cover their costs. When Star Telephone rolled out PCS, it was primarily a defensive move. There aren't enough customers to go around.
Owners have to look longer and harder at profits.
Washburn says Golden Belt Telephone's cable TV and Internet access services are break-even services. In Internet telephone calls watch out. Ares predicts that the technology will take off and leave non-participating telcos in the dust. And it'll impact everyone even the truly remote telcos that think they're insulated from competition. Several NTCA members report that both types of long-distance partnerships work well and profitably.