Issue

 Landline Bundles Appeal, But Broadband More Compelling Than Phone

In-Stat (19 July 2005) research corroborates my last post about the changes facing landline telecom carriers (ILEC, CLEC).

The survey specifically assesses bundled telecom services. Bundling of services reinforces the tie between the supplier and customer and counters competition, specifically switching carriers (providers).

The most interesting finding is that subscribers are bundling around Internet service more often than telephone service (local) or video (satellite or cable), which bodes well for independent IP-based services, such as Voice over IP (VoIP), IP-based video services, online gaming, chat, music, or Plain Old Web Browsing (POWB, my joking alternative to POTS, Plain Old Telephone Service).

In-Stat says half of the US residential market purchased a package, consisting of multiple telecommunications services, from a single carrier. This is up from just one-third in 2004. Note that capturing this percentage leaves less and slower potential for any growth of these bundled services. They say only fourteen (14%) percent of non-subscribers (non-bundled subscribers?) expect to adopt them in the next year.

“The following are typical of bundling and findings of In-Stat: – Providers give greater discounts for a higher number of services and revenue. Half surveyed by In-Stat say (a) lower price was the factor in taking the bundle. – Average revenue per user is an opportunity, but new enticements are needed.

http://www.in-stat.com/

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