we discover the weakness of the existing customer relationship model. Rate plans, billing codes, tariffs and many other names are used to identify the currency of the telecommunications world. No matter what it is called, the rate code identifies exactly what the customer is buying. Rate Plans - The Common Denominator in All Sales Activities Rate plans are the point of any sales or promotional offering. The rate plan is used to distinguish one campaign from another. The Chapter 21 terms of the rate plan provide the sales and promotional groups with an opportunity to create the story that is used to target a specific consumer. If you need additional proof of the universality of rate plans, look at some billing systems. Many different billing systems are used at telcos around the world. Each is different, but all have one common feature. Every billing system tracks important customer information such as name, address, telephone number and, of course, the rate plan. Assumptions Underlying The Rate Plan Once we accept that the rate plan is the true definer of the relation- ship between the telco and the consumer, we are presented with an interesting insight. What exactly is a rate plan and what does it im- Despite the best efforts of most telcos to expand their concept of their product, the basic assumption behind the rate plan is simple and straightforward. The company has a network that provides telecom- munications service. This network has a certain capacity to provide standardized levels of quality and service across a predefined geo- graphical area. The rate plan is a customized price that the consumer agrees to pay for access to that basic network infrastructure. RATE PLAN-BASED BUSINESS MODEL WEAKNESSES Given our understanding of what rate plans are, it is easy to see why the telecommunications industry is constantly fighting challenges of commoditization (turning the telecommunications product into a commodity that is only differentiated by price), as well as high churn rates, and incredible downward price p