Voice over Internet Protocol is a telephone service operating over the internet.
VOIP provides quality voice communication services to anyone with access to a high speed internet connection which is a growing norm in our society. Voice over Internet Protocol is an exciting innovation to communication technology and can be delivered in one of many ways including:
1) PC to PC
2) PC to Phone
3) Phone to Phone
New Innovations generally have several impacts on businesses in the industry and the business that created it. Established businesses that do not adopt the new concept will usually be left behind the dust while businesses that do will survive.
Strategy
Bell has been pitted against many competitors recently such as long-distance service providers and other VOIP providers. Their strategy thus involved bundling several services and offering a discount to the customer in exchange for timed contracts.
The increase in High-Speed Internet subscribers combined with the decrease in Fixed-line Telephone subscribers presents bell with an initiative to further develop their VOIP capabilities. The current figures show a growing trend leaning more towards an internet lifestyle which favours a telephone service operating over the internet.
Product Subscriber Growth Percentage
Fixed-line Telephone (1.7)
High-Speed Internet 24
Video 7.7
Wireless Telephone 10.4
Bell’s Core Business
Bell focuses primarily on Ontario and Quebec which generates large profits to BCE. Some of Bell’s services include mobile telephone services, satellite television and other related communication services. Bell’s massive telecommunication networks combined with its good reputable name has established itself as a provider of digital content for families at home.
Competition
Bell faces heavy competition from cable companies that offer similar services.
Cable companies also adopted similar market share strategies to bell