Home > Back to Publisher > Report Information

U.S. Toll-Free Services Markets

Frost & Sullivan
September 29, 2003
SKU: MC730024

Abstract Table of Contents Related Reports

Countries covered: United States

Toll-free Service Providers Challenged by Web-based Customer Care Technologies

The continuation of toll-free services as a leading customer care platform is threatened by the growing deployment of online self-service customer care technologies such as e-mail and web-chat capabilities by various businesses/companies in the United States. These emerging technologies provide a cost-effective alternative to live agent customer support through toll-free numbers, resulting in declining usage of toll-free services on the part of the consumers and businesses.

This research examines the current trends in the U.S. toll-free services market. Special emphasis has been placed on identifying and analyzing trends in domestic toll-free services revenue, minutes of use (MOU), and product penetration in various vertical market segments such as finance, insurance, and travel and hospitality. Moreover, the research evaluates competitive product and marketing strategies of the various industry participants.

Increasing Use of Feature-rich Internet Self-help Services Impedes Toll-free Usage

The proliferation of the Internet as a 24x7x365 storefront has created strong competitive challenges for toll-free service providers. The growth of e-commerce has enabled customers to shop online without any help from customer service representatives of the e-tailers (electronic retailers). Even in situations where customers require assistance from an agent, the provision of online chat capabilities has reduced the usage of toll-free numbers.

"While it is unlikely that the enterprise customers will abandon toll-free numbers altogether in favor of Web-based customer support, the inbound toll-free call volume and minutes of use is expected to continuously decline owing to intense competition from online customer care services," says the analyst.

Will Toll-free Services Remain a Leading Customer Care Platform?

The Internet and online communications tools such as e-mail mimic the value proposition offered by toll-free services. However, relatively low penetration of the Internet when compared to telephony continues to drive businesses toward subscription of toll-free services for customer care purposes. "The fact that callers can access toll-free services free of charge from payphones, home and office phones, and wireless phones (excluding airtime charges) constitutes a key advantage of the service over Web-based customer care," says the analyst.

For a majority of businesses, toll-free services are likely to remain a viable channel for communication with various stakeholders. Voice interaction through toll-free services is expected to remain a primary communication medium in call centers, as migration to 'pure play' Web-enabled call centers is taking place at a relatively slow pace.

Subscribers of toll-free services, especially large enterprises, demand network-based features and advanced functionalities such as number portability and customized routing capabilities as they endeavor to streamline operations and reduce communication costs. With toll-free services becoming increasingly homogeneous, service providers will be compelled to offer new value propositions in the near future to attract and retain customers.

1. U.S. Toll-Free Services Markets
      1. Executive Summary
           1. Introduction and Market Definitions
           2. Summary of Key Market Trends
      2. Market Overview
           1. Toll-Free Services: The Essence of a Business
           2. Market Challenges
               a. Increasing Usage of Web Capabilities for Customer Acquisition and
                   Support Activities
               b. Relatively Limited Demand for Enhanced Toll-Free Features Within the
                   Small and Medium Business Segments
               c. Declining Toll-Free Prices Create Growth Challenges for Carriers
                   and Resellers
               d. Standalone Toll-Free Providers Face Competitive Challenges From
                   Bundled Services Providers
               e. Limited Growth of International Toll-Free Services Affects Overall
                   Revenue Growth
               f. "Imitation" Numbers Increase Reluctance to Use Toll-Free Services
           3. Market Drivers
               a. Ability of Toll-Free Services to Provide 24x7x365 Storefront Remains
                   the Leading Growth Driver for the Industry
               b. Rising Use of Off-Shore Call Centers Stimulates International Toll-Free
                   Growth
               c. Provision of Advanced Toll-Free Features Encourages Enterprise Usage
                   of the Service
               d. Longer "On Hold" Time Periods Fuel Growth in Toll-Free Minutes of Use
               e. Continued Use of Prepaid Card Calling Services
               f. Growth in Toll-Free Usage by Multiple Market Sectors
               g. Use of Toll-Free Services for Emerging Applications
           4. Market Restraints
               a. Greater Business Focus on Streamlining Customer Care
               b. Uncertain Economic Environment Within the U.S.
               c. Usage of Enhanced Routing Techniques by Large Businesses
                   Shorten Toll-Free Call Duration
               d. Limited Use of Advanced Toll-Free Features by Small Businesses
               e. Increasing Business Bankruptcies in 2001 and 2002
               f. Implementation of Alternative Communication Capabilities Further
                   Limits Toll-Free Usage for Customer Care Applications
      3. Market Forecasts and Trends Analysis
           1. Total Market Forecasts: Has Demand For Toll-Free Services Reached a Plateau?
           2. Trends in Toll-Free Usage
           3. Other Market and Technology Trends
      4. Business Toll-Free Services
           1. Switched Toll-Free Services Carry Appeal Among Niche Business Segments
           2. Dedicated Toll-Free Services
           3. Which Vertical Market Segments Will Continue to Exhibit Growth in
               Toll-Free Usage?
           4. Domestic Toll-Free Usage Outweighs Demand for ITFS and UIFN
      5. Residential Toll-Free Services
           1. Alternative Technologies Displace Residential Toll-Free Services
      6. Conclusions & Market Engineering Awards
           1. Conclusions: Will Toll-Free Services Remain A Leading Customer
               Care Platform?
           2. Strategic Recommendations
           3. Frost & Sullivan Awards for the U.S. Toll-Free Services Market

   List Of Figures

Chapter 1

Toll-Free Services Market: Seven-Step Market Engineering Forecast Methodology (U.S.), 2003
Total Toll-Free Services Market: Minutes of Use Forecast (U.S.), 1999-2009
Toll-Free Services Market: Impact of Top Industry Challenges (U.S.), 2003-2009
Toll-Free Services Market: Market Drivers Ranked in Order of Impact (U.S.), 2003-2009
Toll-Free Services Market: Market Restraints Ranked in Order of Impact (U.S.), 2003-2009
Total Toll-Free Services Market: Domestic and International Minutes of Use Forecast (U.S.), 1999-2009
Total Domestic Toll-Free Services Market: Minutes of Use and Revenue Forecasts (U.S.), 1999-2009
Domestic Toll-Free Services Market: Historical Total Toll-Free Call Volumes with Domestic Origination (U.S.), 1992-1999
Total Toll-Free Calls with Domestic Origination: Market Forecasts (U.S.), 1999-2009
Domestic Toll-Free Services Market: Total Working and Available Toll-Free Numbers (U.S.), 1993-2003
Domestic Toll-Free Services Market: Distribution of Domestic Working Toll-Free Numbers by Prefix (U.S.), 2000-2003
Total Domestic Working Toll-Free Numbers: Market Forecasts (U.S.), 1999-2005
Total Domestic Toll-Free Services Market: Distribution of Minutes of Use, Business vs. Residential Services (U.S.), 1999-2009
Business Toll-Free Services Market: Total Minutes of Use, Domestic and International (U.S.), 1999-2009
Total Domestic Toll-Free Services Market: Distribution of MOU, Dedicated vs. Switched Services (U.S.), 1999-2009
Domestic Toll-Free Services Market: Switched Services Forecast (U.S.), 1999-2009
Domestic Toll-Free Services Market: Dedicated Services Forecast (U.S.), 1999-2009
Business Toll-Free Services Market: Distribution of Traffic by End-User Segment (U.S.), 2002
International Toll-Free Services: Market Forecasts (U.S.), 1999-2003
Domestic Toll-Free Services Market: Residential Toll-Free Services Forecast (U.S.), 1999-2009
Residential Toll-Free Services: Selected Service Provider Product and Pricing Analysis (U.S.), 2003
Toll-Free Services Market: Competitive Structure (U.S.), 2003
Toll-Free Services Market: Impact of Top Industry Challenges on Business Functions (U.S.), 2003-2009
Toll-Free Services Market: Impact of Top Industry Drivers on Business Functions (U.S.), 2003-2009
Toll-Free Services Market: Impact of Top Industry Restraints on Business Functions (U.S.), 2003-2009

More United States Billing & Cards Reports

U.S. Prepaid Wireless 2010-2014 Forecast and 2009 Vendor Shares by IDC
This IDC study examines the market for U.S. wireless prepaid services, analyzing providers by subscribers and revenue. It discusses recent developments in the U.S. market, ...

U.S. Prepaid Wireless 2010 Vendor Profiles: What Will the Carriers Introduce Next? by IDC
This IDC study examines the prepaid wireless industry in the United States. It provides an overview of the prepaid wireless market and a competitive analysis ...

U.S. Prepaid Wireless 1Q09 Vendor Profiles: Strategy Drill Down by IDC
This IDC study presents a competitive analysis and summary of the prepaid wireless industry in the United States. Standard industry operating metrics, including subscriber/customer totals, ...

U.S. Prepaid Wireless 2009-2013 Forecast: Prepaid Subscriber Growth Will Be Solid by IDC
This IDC study examines U.S. wireless subscribers and revenue, specifically for the U.S. wireless prepaid subscription market. The U.S. wireless market has entered its mature ...

U.S. Mobile Teen and Adult Consumer Survey, 4Q07: Prepay Versus Postpay Results by IDC
This IDC study analyzes the combined responses of nearly 4,200 wireless subscribers and customers regarding their usage patterns and spending habits on mobile data ...

See all reports like this >>

More United States Reports

e-Discovery Software Publishing in the US - Industry Market Research Report by IBISWorld
e-Discovery Software Publishing in the US Finding growth : Electronic discovery (more often known as e-discovery) refers to a data search, location and securing process for use ...

D&B Country RiskLine Report: The United States of America by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...

D&B Country Report: The United States of America by Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...

Country Report United States January 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

Coal - US - a snapshot (2010) by Mintel - Snapshots
Coal in US by Mintel Global Market Navigator provides you with annual year-end market size data, most recently updated in 2010. This market covers consumption ...

See all reports like this >>

U.S. Toll-Free Services Markets

Share this report

Other tasks

Research Assistance

Related Markets

Free Alert Me service