| 12th April 2004 - According to In-Stat/MDR,
the heavy emphasis placed on bundled services by
US telecommunications carriers is beginning to pay
off, with a growing number of consumers purchasing
local, long distance, Internet access, cable and
satellite TV, and wireless as part of a multi-service
bundle. A recent report issued by the high-tech
market research firm finds that 28.6% of US consumers
currently purchase multiple telecommunications services
from the same provider, up from the single digits
in 2002.
Bundles offer numerous benefits to the consumer,
including discounted pricing, the convenience
of a single bill, and a single point of contact
for customer service. They also yield significant
dividends for carriers in the form of reduced
subscriber churn, increased average revenue per
user (ARPU), and lower operational support costs.
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Although wireless is a relative latecomer to the US
telecom bundle, consumer preferences and purchasing
behavior demonstrate a strong potential for growth as
more carriers ramp up their efforts to combine wireless
with local, LD, and other services.
In-Stat/MDR also finds that:
- Profiling and analysis of wireless subscribers currently
purchasing a telecom bundle found that they are most
likely to be members of demographic segments that
are highly attractive to carriers: ages 30-49, residents
of suburban areas, and well-educated, with household
incomes of $100,000 and more.
- Bundle purchasers are most likely to be subscribers
to Verizon Wireless and Nextel and tend to be heavy
users of both wireless voice and data services.
- 47% of wireless subscribers surveyed by In-Stat/MDR
are interested in purchasing a bundle of wireless
and local phone services, demonstrating a sizable
gap between interest in wireless bundles and the current
market reality.
- Leading factors that would influence consumers to
purchase a bundle of wireless and local phone services
include price discounts, a unified bill for both services,
and unified customer service.
This Market Alert is drawn from the In-Stat/MDR report,
"One-Stop
Shopping: Wireless Services in the Consumer Telecom
Bundle", which includes survey results and
behavioral and demographic profiles of wireless subscribers
who purchase a bundle of telecommunications services.
The report also includes analysis of the key influencing
factors that would cause subscribers to switch from
their current provider to a carrier offering a bundle
of local and wireless telephone services and a summary
of wireline and wireless carrier bundling programs that
currently offer wireless together with other services
as part of a single telecommunications package.
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