The main purpose of this thesis is to analyse the current state of Gamtel less competitive nature in the telecom industry and therefore use its competitive advantage and core competencies to pursue and endeavour to invest on internet service provision mainly on broadband. With high expectations from the launching of the ACE, Africa coast to Europe submarine cable, the plan is to take the opportunity brought by this Landing station to significantly expand on its current broadband technology provision, which is DSL (digital subscriber line), CDMA 3G wireless broadband connection and Leased line connection. The growth in the sector is still encouraging between 8 to 10% and Gamtel is foreseeing to increase its already existing leadership in terms of market share on the internet segment or ISP internet service provider market. There is a high capital investment required for this project but funding could be obtain from banks and even state own corporation at better rates and also self-funding of over GMD 90 million. The cash flow projections had shown a positive net present value (NPV) thus; indicating that this plan will is viable. With the three product categories, it is assume that the DSL and the CDMA 3G wireless broadband could be the cash cows whiles the leased lines connection for broadband which used to bring the biggest revenue in the data category will likely be going down, an impact the ACE project will brought along as the biggest customers from this service were the private ISP who now can connect direct to the ACE cable. As the implementation of the ACE goes on prices are expected to further fall as bandwidth becomes cheaper and cheaper and volume or high quantity purchase of bandwidth starts to emerge thus economics of scale.

Under the four forces of opening up of domestic telecommunication market, breakthroughs in information and communication technology, changes in consumer demand, and supplier¡¦s race for economic efficiency, industry structures have transformed. What used to be three distinct industries of divergent directions of development ¡V network service (computers), telecommunication (telephones) and cable television (television), are interacting. The market is growing rapidly with combined digital flow of the three industries. Broadband internet played a key role in such transformation. ADSL broadband internet service has prospered in recent years. As the internet population approach maturity, the market has changed focus from quantity to quality. There are two major challenges to fixed network internet service providers are: To increase market share by attracting more customers to its service base, and retain customers to minimize loss of customers. Telecommunication service providers attract new customers by offering special prices with gifts, they retain customers by elevating switching cost and long term contracts. But the result of price-cutting competition was erosion of profit margin. Customer loyalty is also swayed by low prices met by competitors. Under such intense competitive environment, service providers are actively developing digital content and making investment in fiber optic broadband to mitigate loss. It is hoped that richer internet content and faster speed broadband can attract more customers and increase customer revenue contribution. The subject of this study are ADSL broadband internet users in the greater Kaohsiung area, the regions surveyed include Kaohsiung County and Kaohsiung City. A questionnaire was used as the data collection tool. The survey was conducted on a convenient sample. Data was analyzed using SPSS statistical software. The influence of customer¡¦s expected future benefits, overall customer satisfaction and marketing strategies on customer retention were investigated. Furthermore, the interaction effects were also reviewed. The results of the study are: I.The most important factor in influencing customer retention is overall customer satisfaction, followed by marketing strategy and customer¡¦s expected future use. Further results are derived from analysis: 1.Overall customer satisfaction, customer¡¦s expected future use and marketing strategy showed significant positive influence on customer retention. 2.The influence of overall customer satisfaction, customer¡¦s expected future use and marketing strategy on customer retention vary in strength. 3.Marketing strategy showed significant positive influence on overall customer satisfaction and customer¡¦s expected future use. 4.With respect to the degree of influence on customer retention, overall customer satisfaction showed greater influence than marketing strategy and customer¡¦s expected future use. II.Customers exhibit high expectations for future use¡C Telecommunication service provider satisfying the following ¡§customer¡¦s expected future use¡¨ will significantly enhance customer retention. 1.Provide value-adding services. 2.Provide more value-adding application content. 3.Offer better prices. 4.Exchange fiber optic with ADSL in the future at free of charge