1 Consider a local telephone company offering triple-play (TV, Internet, and Phone) services to residential customers in a single metropolitan area. What might be the reasons that such a company loses its revenue and profits? Consider the influence of changing business models, technological enhancements and regulations for answering this question. You may assume that the company owns the local loops and the switching equipment for its service in the area.

2 Suppose you are the new CEO of the local company in part (7.1). The company is committed to stay in business and increase the revenue. You are asked to present your strategy to the board of directors of the company. Propose three new initiatives to keep you in business, grow in revenue and increase profit. Briefly explain their pros and cons.