Provider Mergers
by Timothy C. Colwell, Director of Knowledge Operations, TeleManage Training, Inc.

There are many issues to consider as providers merge. It is possible over the next few years that one or two mega-providers will offer all voice, data and wireless services across an expansive geography. This shift would afford subscribers the benefit of leveraging full buying power when negotiating rates and contract provisions.

A downside to consolidation is that choice is limited and competition wanes. The post-divestiture telecom market has seen rapid technological growth, dramatic cost reduction and impressive geographic service penetration. It has been a buyer's market. Each benefit to customers has been fueled by market competition. Reductions or elimination of competition for specific services, or in specific areas, removes provider focus on innovation, affordability and expansion into areas not likely to yield profit.

As the market changes, so will the strategy for managing telecom. Byproducts of mergers vary. Account team changes, provider expertise levels, contract and invoicing disputes, and overall provider flux expand management variables associated with meeting objectives, which include maintaining technical and financial integrity. While providers are expert at changing logos on letterheads, updating websites and launching massive media campaigns, the rubber meets the road for enterprise subscribers with customer service, finance and technology changes. Mergers that alter providers' customer service points of contact, overall ability to perform expected job functions and deliver quality are factors that directly influence telecom management efforts.

As mergers continue, telecom professionals are required to maintain and improve provider relationships. Left unattended, relationships with once-familiar providers can degrade into a commodity transaction devoid of benefit. Diligence in supporting enterprise objectives and working through provider transitions is self-serving and self-preserving. While market opinion suggests that mergers create substantial benefits for subscribers, the extent of these must be defined to consider all business relationship areas in order to reap benefit. Attention to internal relationship needs and working with providers to meet them is prerequisite to enjoying the benefits.

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