Telecom Italia's Radical Plan: Introducing the Video Phone

Telecom Italia is addressing the challenge of declining fixed line usage by launching a new video phone. This device allows low-cost video calls over landlines without needing additional equipment. It features a micro camera and modem, offering better picture quality than 3G phones. The phone is priced at €6 cents per minute and is designed to be accessible for the hard of hearing. Despite some concerns about motion quality, it holds potential for medical use. Telecom Italia is promoting the phone through extensive advertising to its 20 million customers.

What challenge has Telecom Italia faced in the telecom market?

• Lack of customer interest in video calls

• Regulatory restrictions on new technology

• Competition from mobile phones

• High cost of landline maintenance

What is a key feature of Telecom Italia's new video phone?

• Offers better picture quality than broadband

• Can make low-cost video calls to landlines

• Needs additional devices for video calls

• Requires special skills to operate

How does the picture quality of the video phone compare to other technologies?

• Same as standard landline calls

• Worse than 3G mobile phones

• Better than broadband Internet

• Better than 3G mobile phones

Who might benefit from using the video phone according to the company?

• Children learning new languages

• The hard of hearing using sign language

• People with visual impairments

• Travelers needing international calls

What strategy has Telecom Italia used to promote the video phone?

• Offering free trials to new customers

• Using extensive television advertising

• Partnering with mobile phone companies

• Providing discounts on landline services