THE INTERNET AS A MARKET FORCE IN TELECOMMUNICATIONS: MARKET STRATEGIES AND FORECASTS 2000 TO 2005

The Internet is driving significant change in telecommunications markets.  Circuit switch architecture is being replaced by packet transmission. 

The Internet revolution is in response to demand for Internet connectivity.  Services providers are responding to a growing number of Internet users by evolving solutions for business to business exchanges and for Internet site management.  Economies of scale offered to businesses by the Internet are dramatic. 

Cisco has monthly online sales that top $1 billion.  Annual operating cost savings equal $825 million.  70 percent of support calls are resolved over the Internet and customer satisfaction has increased significantly.   The Internet brings a revolution in every market.  The revolution impacts companies in every industry segment.  As IT managers implement online technology to achieve economies of scale, equipment and services markets are seeing pockets of strong growth.  Internet market participants are increasing the number of strategic alliances with large and complex organizations.