ing countries, usually just as they clearly to sell services, not clear channels, if this is possible. One Technology A Technology B Early introduction Growth Saturation Obsolescence Figure 11.7 Technology usage curve Services and technology 11/13 form is the use of virtual private circuits, the customer buying nology which enables this service to be presented in an efficient and circuits on demand to match his current needs. economic form. In some cases the technology and the service which it supports are clearly separable, whilst in others they are interde- 11.4.6 Customer perception pendent. For example in mobile communications the need for per- sonal communications is so closely related to the technology that Price is the key to the adoption of a service by the mass market. provides it, that the same term is often used for both, PCN meaning the service and the network which delivers it. Households spend a fixed proportion of their income on the media, but expect more for their money over time. Therefore prices need to fall in real terms to meet their expectations. 11.5.1 Service and technology trends Telecommunications is unique in that, in the majority of cases, the invoice for the service comes much after consumption of the service Figure 11.8 shows the development of technology and services over has taken place (Weiss and Lewis, 1991). Consumers therefore do the past century. This illustrates two important developments: not have direct price feedback; they have to depend on their experi- ence of previous usage of the service. To some extent this is no 1. The exponential growth curve, with the introduction of many different to other services, such as gas and electricity, although new technologies and services over the past two decades. household meters are more common here, which may be checked Like old soldiers, technologies do not die; they fade away, but periodically. that too takes a long time. Therefore telegraphy has been Lack of direct price feedback means that customer perception of around for over 