What are the criteria I should use to decide what service elements I need to buy or rent to deliver my long distance service?
There are three stages of service launch: Execution, consolidation and integration. These stages are referring to the level of flux in the market. The more fluid the market environment, the greater the importance of deployment speed and operating a lean network and MIS infrastructure. Execution Usually the first two years after the market is liberalized. Year 1 is characterized by the retail price and the average cost for terminating international traffic dropping by 70%. In the second year average termination rates will fall by a further 30%. In parallel, only about 15% of the long distance minutes will switch from the incumbent to all of the competition. During this time, every month it takes to launch will reduce the return on your investment. Therefore, make extensive use of application service providers for speed and to avoid committed capital costs and make the best possible use of dedicated network facilities. Consolidation By the third year, the rate at which long distance rate