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Wholesale VoIP Feature Article

Is Your Company Suffering From a 'Post-Election Dialer Hangover?'

 
December 10, 2012
By Allison Boccamazzo, Managing Content Producer
 

After a late night out, a common early morning routine requires popping some Advil and running to the Keurig machine for solace. Many of us are especially familiar with this feeling on New Year’s Day; however, wholesale VoIP providers everywhere have been feeling the after-effects of their hangovers for over one month due to the busiest time every four years – the U.S. Presidential Election.


No one knows this feeling better than wholesale VoIP service provider VoIP Innovations (News - Alert), where President Jason Tapolci tackled this problem head on in a company blog post last week.

The Presidential Election is still making waves almost one month after the United States of America decided to reinstate Barack Obama for another four years, but just how much did it take for him to secure his spot at the top?

It’s been estimated that both Obama and Romney dished out more than $2 million dollars vying to win the country’s affection during this year’s presidential election. A slew of industries saw a piece of this pie, but one among the many in particular was the telecommunications industry, which the company notes benefited most from “the intense demand for predictive dialer services.”

“Every four years telecommunications and Wholesale VoIP providers reap the benefits of political campaigns,” the blog continues. “We’ve all received these calls. You are sitting at home eating dinner and the phone rings. Sure it’s annoying, but for the telecommunications industry it’s a pot of gold, or at least they think it is. These carriers and providers enjoy a spike in traffic during election years, which culminate in October and early November, and then they hit the proverbial fiscal cliff. Overnight, demand disappears and large chunks of revenue dry up. What’s left is a market that is supply heavy, with little demand.”

Tapolci even noted that at the peak of the election season, dialer termination saw four to five times more traffic than normally seen throughout the rest of the year, and eventually, this intense demand caused prices to become inflated.

“This intense demand followed by the lack of supply initiated a commodity-based service to become a premium-based service,” VoIP Innovations explains. “Once the election was over, so was the party and the hangover began. The companies that rode this dialer termination wave are now faced with the downside; reduced revenues, too much capacity, and price fluctuation.”

So what can you do if you’ve been seeing significantly less revenue in November than in previous months? Even more importantly, how can you fully operate with unused capacity affecting margins?

VoIP Innovations, an expert in the industry, exposes where the problem lies, explaining, “To win additional business, companies are reverting to a strategy of lowering prices to force the dialer termination market back to being a commodity-based service where prices rules. The net result is an industry that overnight went from having too much demand to an industry with too much supply, causing a post-election hangover.”

In other words, this represents a classic case of supply and demand at work.

While there may not be a go-to cure for this rather huge hangover yet, companies such as VoIP Innovations definitely have the right idea and perspective of how to work through it to stay at the forefront among competition.

To learn more about VoIP Innovations’ offerings, visit www.voipinnovations.com.

To find out more about VoIP Innovations, visit the company at ITEXPO Miami 2013, taking place Jan. 29- Feb 1 in Miami, Florida. Visit VoIP Innovations in booth #507. For more information on ITEXPO (News - Alert) Miami 2013, click here.




Edited by Rachel Ramsey
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