s to 15 million households, and the number of workers in the segment nearly doubles, from 11.8 million to 22.3 million (see Figures 1 and 2).
The second key problem facing Advanced Telephone is what services it should offer. These services include those currently offered, such as three-way calling and call waiting, as well as proposed services that the company might use to target the home office market. The validity of the survey which queried customers about services they might use is questionable because there is a reluctance among some consumers to admit they have a home office. None of the proposed services received a great deal of support, and it may well be that Advanced Telephone must conduct additional research to develop services that better address the needs of the home office market.
The third key problem that Advanced Telephone faces is to determine how to eliminate the "phone cop" issue that its customers have. This problem stems from the fact that Advanced Telephone (like most telephone companies) charges more for business lines than for residential lines. Because of this, customers are reluctant to admit to the phone company that they are operating a business from their house because they are afraid that the phone company will automatically increase their rates. Those who are self-employed are often very concerned with controlling costs, and those who are working at home for their outside company may not consider their home activities "business related" since these activities do not constitute their primary source of income.
If Advanced Telephone can successfully overcome the "phone cop" image, it can gain better information regarding its customers, including their preferences and service needs. In the long-
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