One Day!

Recent marketing surveys have confirmed that the integration of local, long-distance, wireless, Internet, satellite and selected enhanced services is what customers want. Yet although customers may desire integration, not every customer will want every level of service. The big question, however, is whether or not service providers are getting the message, and the answer seems to be both yes and no.

While most carriers have packaged and branded a variety of voice and data call types under such monikers as MCI One, networkMCI One, Sprint Solutions and, most recently, AT&T.ALL and AT&T One Rate, true integration has been limited. Instead of combining actual services using one rate, one bill and one number, many service providers believe that by offering customers one customer service number to call for information, or that by providing Internet icons that access on-line customer service representatives, they are answering their customers' cries for integration.

Another tactic that has been used by some service providers to achieve integrated offerings has been through one-number services. While one-number services are a step in the right direction, the network infrastructure currently requires that the "one number" be different from a customer's billing telephone number.

Although the deployment of SS7 and the Advanced Intelligent Network has provided the network intelligence to support customers owning only one number, true one-number services are a long way off. With local markets opening to competition, industry discussions are underway to develop number portability-a critical first step. Because this will take awhile, it may be wise to look at some other possible options for integration.

Another possible service integration option has come from some of the new kids on the block-wireless providers. Wireless providers have made the plunge into integrated services by offering wireless long-distance, but they have yet to integrate wireless and local billing services, let alone one rate, one number and one mailbox services.

For example, 360° Communications has been marketing residential long-distance services in 15 states. The carrier has been enticing customers with 360 free minutes of either local cellular or domestic long-distance minutes-60 free minutes a month during the first three months of both the first and second year of service. In addition, customers receive a simple rate structure: 20¢ a minute for peak time calls and 12¢ a minute for off-peak calls.

The promotions are packaged to keep customers over an extended period of time. Hopefully, this retention strategy will work until the carrier can deliver on the one solution that meets customers' needs. Based on what other carriers are doing, it appears this plan will work. For example, Sprint has been able to demonstrate with Business Sense that one day free, together with a simple rate structure, is a robust interim enticement.

Billing issues Providing customers with an integrated billing solution is an important consideration. While debate continues whether customers will be satisfied with one bill, one thing is certain: Customers want choice.

According to a recent TeleChoice survey, customers want to be recognized holistically and, depending on specific needs, want to be able to pick and choose between combined and separate bills and management reports. Some customers may want wireless and wireline traffic reported separately, while other customers find separate remittances to be a necessity for doing business.

Increasingly, management reports, which allow a business to understand telecommunication costs across the company, are becoming a means of differentiating service offerings. Company locations may require separate invoices, while the company headquarters requires a report that recognizes the total amount of traffic and expense it gives a carrier.

Following deregulation, MCI quickly brought to market an integrated service offering for residential customers. MCI One offers local and long-distance wireless and wireline service, Internet access and an integrated bill. Quickly following MCI One, networkMCI One was introduced for business customers. It also offers customers a single bill and discounts for the total service used by the customer. One bill-or more precisely, a consolidated billing engine-is required to give customers value for all the services they use with one provider (Figure 1).

Another key issue is pricing. When you purchase clothing, the price is on the tag dangling from the sleeve. When you purchase groceries, the price is readily displayed on the shelf. So where is the price displayed when you pick up the phone? Recently, the Big Three interexchange carriers have been marketing price simplicity, giving customers one rate plan and letting them know the cost of a call. Although customers are still uncertain about what they are paying, these programs seem to be working.

This is evidenced by Sprint's success with its Business Sense and Clarity offerings. Business Sense mirrors the Sprint Sense residential offering with peak time and off-peak rates, while Clarity-which has traditionally been offered to small and medium-sized business customers-provides single flat rates by service type.

Another example of price simplicity is evident in AT&T's One Rate plan. The IXC is offering a flat rate of 15¢ a minute, 24 hours a day to consumers-and to some work-at-home and small business customers-who make direct-dialed long-distance calls. The AT&T One Rate plan underscores the current trend of structuring price to make it easy for customers to understand, for the sales department to sell and for customer service to support. Combining several call types at the same rate is only now beginning to be introduced in the market.

One-rate structures are obviously challenging to implement for international calls. However, many IXCs have promoted a reduced flat-rate structure to both Canada and Mexico, as well as flat rates to the 20 most frequently called countries. This has helped increase both business and residential international traffic for voice and data services.

Building on this flat-rate calling trend, international rate structures will most likely take on a rate-per-global calling region scenario. This scenario has been tested over the past three years by Cable & Wireless Inc., with very good results. In some respects, pricing schemes of a previous era are coming back into fashion-and they are better this time, offering more services, features and functions.

The challenge that remains is whether a service provider can come close to delivering an integrated product that embraces a value position for every customer (Table 1).

Further integration When you receive regular mail or overnight deliveries, they are deposited in one in-box. This single in-box idea, however, has generally not been used for electronic messages. Checking electronic messages or information can take hours if these messages have multiple destinations.

Carriers have been offering call answer and voice mail services for more than seven years, and for some customers this is sufficient. The rapid expansion of the small office/home office segment, however, requires a more sophisticated solution. Customers need tools that manage their communications simply, effectively and efficiently.

The one-mailbox concept has been deployed by a variety of service providers and allows users to manage all their messages-such as voice, fax and e-mail-from one list. In addition, an automated attendant can be supplied to coordinate call management, conferencing, appointments, address books, and wake-up or reminder calls.

Again, not every customer will need every option, but one mailbox is easier to manage than requiring customers to check multiple places to manage incoming and outgoing messages. By providing customers with one mailbox, carriers can sustain loyalty, usage growth and revenues.

For years, satisfaction guarantees have offered to switch customers back to their previous carrier-at no charge-if the customer is not satisfied with the provider's service for any reason. These guarantees will, no doubt, be raised to higher levels, offering greater value, as customers become more sophisticated users of communication services and demand higher levels of customer care.

Some carriers have moved to brand services together and provide an overarching umbrella of customer service and satisfaction guarantees-for example, AT&T's "True" products. However, this "one promise" has not spanned across all products and services provided by a carrier, especially on the residential side. For example, it should be noted that AT&T did not use its True branding for its One Rate plan, nor is its digital personal communication services offering called "True Digital PCS."

AT&T has taken a major step in the right direction on its business side of the house with its recently announced AT&T.ALL service platform. This platform provides a single source for customer care and a consolidated billing option across services-such as long-distance, local, cellular, messaging, local toll, Internet, calling card and 500-number services. However, it still does not address the one-rate and one-mailbox aspects of service integration. Another concern is that carriers don't-and in some cases, can't-offer all service components nationally.

True integration will arrive only when service providers step up to the promise of delivering one rate, one number, one bill, one customer service number and one mailbox from which to manage all messages. Another prerequisite is a call anywhere, anytime service set-including wireless and wireline local, long-distance, and Internet services. It won't be soon, but it will happen... one day.

Christopher Landes and Keri Gascoyne Harrod are switched services consultants at TeleChoice Inc., Verona, N.J. Their e-mail addresses are clandes@telechoice.com and kgascoyne@telechoice.com.