Covad Communications Group Competition
Now Viewing Covad Communications Group's competition in: Internet Service Providers
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How many customers does the company have for Web hosting? - Though still a small part of the industry, some companies specialize in this service.
How quickly has the company moved to provide broadband access for customers? - While businesses often have high-speed Internet access, some consumers still use dial-up.
How rapidly has the subscriber base grown in the last few years? - About two-thirds of all Americans use the Internet, and many more are expected to go online in coming years.
Who are the major competitors in the company's markets? - Large companies include AOL, AT&T, Comcast, Microsoft, and Verizon.
Competitive Landscape
Demand is driven by consumer and business requirements for information. The profitability of individual companies depends on efficient operations and good marketing. Big ISPs have economies of scale in operations, purchasing, and marketing. Small companies can compete successfully by operating in underserved markets or excelling in customer service.
Business Challenges
CRITICAL ISSUES
Competition from Telecom Companies - In view of the growing importance of the Internet to their businesses, many companies bypass ISPs and connect directly to the Internet through the large telecommunications companies that provide the backbone of the network. In coming years, even small and midsized companies are likely to follow suit. Many customers now have sufficient technology expertise in-house to manage direct connections.
Large Capital Investments Required - As consumers and businesses use the Internet more and demand more services, ISPs continually have to invest in new equipment. Although prices for computer servers continue to fall, periodic investments require access to large amounts of capital. The need for large capital investments has driven consolidation in the industry.
Industries Where Covad Communications Group Competes
- Telecommunications Services
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Data Services(primary)
- Internet & Online Services Providers
- Fixed-line Voice Services Providers
- Wireless Communications Services
- Wireless Network Operators
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Data Services(primary)
