65 per cent of US net homes ready to switch to bundled services

MUMBAI: Over 60 per cent of Internet households in the US would be willing to consolidate their services under a single provider if that would save $20 per month.

The report Bundled Services: Analysis and Forecasts, has been published by Parks Associates. The report notes that the prospect of cost savings far outweighs convenience as an influencing factor. Only 43 per cent of the survey's respondents would switch to a video, telephone, and Internet bundle without a savings incentive.

Parks Associates analyst William Cheek added, "Cost is important to subscribers, and at least some savings must be a central theme of any successful campaign for bundled services.

"The challenge for service providers will be not to simply underprice their service packages in a shortsighted attempt to stem churn and attract new customers.

"Instead, they will need to define value to their customers that includes such variables as the convenience of all services on one bill, one point of contact for service issues, and value-added features and applications that can be layered upon basic services."

Over 4,000 US households were surveyed. The study also found that 74 per cent of households likely to upgrade to broadband Internet in the next 12 months would subscribe to a bundled service package that could save them $20 per month for data, voice, and video services.

"This is encouraging for service providers. As more households switch from narrowband to broadband, the number of households with bundled services could increase almost in tandem, provided that providers offer and adequately demonstrate the value -- above and beyond cost savings -- of these options," Cheek added.

Parks Associates is a market research and consulting firm focussed on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

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