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Phone, Cable Companies Advised To Bundle More Services

May 17, 2006

Tech Web Adding services to "triple-play" bundles could boost monthly revenue per subscriber to $206 by 2010 from $148 today, Parks Associates said. Additional services could include TV-based caller ID and home monitoring, satellite radio, and online storage.

Almost a third of broadband consumers intend to add TV-related value-added services to their current product bundles, and 41 percent are interested in adding supplementary services to their Internet subscriptions, Parks Associates said. As a result, cable and telephone companies should focus on differentiating themselves through services, rather than competing just on price and slick marketing campaigns.

"It's going to take a couple of years before we actually see them competing head to head with cable operators," Parks research analyst Deepa Iyer said. But to convince cable subscribers to switch, telephone companies will have to offer product bundles that are better than cable's in every way.

"They haven't done a very good job of offering wireless as part of a bundle," Iyer said. "They still have a lot of work to do in integrating wireless services with other services. Once they do that, they will definitely have an edge over cable."

From the article "Phone, Cable Companies Advised To Bundle More Services," by Antone Gonsalves.

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