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Why is CentreCom targeting this market and why did they choose TEK DigiTel as the technology provider?

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Why is CentreCom targeting this market and why did they choose TEK DigiTel as the technology provider?

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CentreCom believes, in line with many telecommunications analysts, that the marketplace for flat-rate or free long distance calling (like flat rate or free Internet connectivity) will experience explosive growth. The only way for a provider like CentreCom to be able to offer flat-rate or free long distance services will be to cut their own cost infrastructure to the point where they can still make money. This creates the need for IP telephony. CentreComs choice in this regard is simple: invest in PSTN gateway POPs all over the world(this has been the trend so far) or install a CPE device that would enable Internet access as well as provide single step dialing , as well as eliminate the need for PSTN gateway POPs. TEK is one of a very small group of Customer Premise Equipment suppliers. Within that group, TEK was the logical choice for CentreCom because of their lower cost device and their interoperability with Cisco routers and gateways. This is a major condition and one which the othe

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