Price Forecast: Wireline Telephone Services

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  • Tags : Office Management | Wireline Telephone Services | Price trend | Price forecast | Procurement research | Category market forecast

Recent Price Trend - Wireline Telephone Services


In the three years to 2017, the average price of wireline telephone services has been rising at an estimated average annual rate of 1.5%. During this period, many customers have been dropping landline telephone services in favor of alternate communication methods. This shift in telecommunication preference is due to the improvement of mobile telephone technologies and other substitutes, which has made wireline telephone services significantly less desirable. The resulting decline in demand has hindered suppliers’ ability to pay for necessary telecommunications infrastructure maintenance. Consequently, suppliers have been passing their increased operating costs to their remaining buyers in the form of higher services prices.

The changing face of telecommunications in the United States has forced service providers to raise wireline telephone service prices to stay afloat. In recent years, the convenience and mobility of smartphones has strongly incentivized businesses to switch from wireline telephone services to alternate telecommunication methods. In addition, many residential customers have been discontinuing their wireline telephone services, opting to use cell phones as their primary phone. This mass migration away from wireline telephone services has led to a decrease in revenue for suppliers, forcing them to cut profit margins in order to cover landline infrastructure maintenance costs. Wireline telecommunication infrastructure maintenance includes replacing sections of aging or damaged telecommunication wires and preventing static. With more customers leaving the market and profit margins shrinking, increases in operating costs are being passed to remaining landline customers in the form of higher service prices.

Fortunately for buyers, wireline telephone service prices have been exhibiting a low level of volatility during the past three years. Low price volatility benefits buyers by reducing the likelihood of significant price fluctuations. Moreover, low price volatility allows buyers to more accurately budget for future service expenses. Nonetheless, to further mitigate rising prices, buyers of wireline telephone services can enter into short-term contracts as services are needed.

 



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