Report: Telecom Services Up, But Future 'Tepid'

Research finds that just under half of the U.S. residential market has purchased multiple telecommunications services as a package from a single provider.

July 19, 2005

1 Min Read
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In-Stat research finds that just under half of the U.S. residential market has purchased multiple telecommunications services as a package from a single provider. That figure is up soundly from just one-third in 2004. However, the potential for growth of those bundled services is only "tepid" at best, states the report, with only 14 percent of non-subscribers expecting to adopt them in the next year.

According to the report, the appeal of individual service varies among different demographics, and providers will need to offer a variety of package choices to match the appropriate services with different customers' needs.

Some of the recent report's findings include:

  • Providers typically scale discounts so that the more services that are purchased, the greater the savings. This strategy appears to be working, as 50 percent of respondents indicated that they purchase bundled services for the lower price.

  • Significant revenue opportunities remain to further expand average revenue per user; however, new approaches are necessary to entice non-subscribers.

  • Internet service was more often included in a bundle than local phone service or cable TV among survey respondents. This is interesting for the future of IP-based services such as Voice over IP (VoIP) and IP-based video services.

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