Telecom service prices fall down 10% every year
The prices of most telecom services have fallen by 10% every year even while their adoption increased by around 15%. This makes it difficult to create a defendable and profitable niche within the market because dozens of competitors can deliver the same service. Telecom carriers see a way out of the situation with service bundling. Apart from reducing customer churn, it enables carriers to provide commoditized services at prices higher than the market value. Bundling can also help save costs in areas of bill statement creation, paper, printing, and postage.