MediaVideoPrice Motivates Triple-Play Subscribers

Price Motivates Triple-Play Subscribers

Price is key to the bundling of communications services.

Bundle telecom services account for telephone, Internet, cable and mobile in over 31 million U.S. homes according to the “Total Communications Survey” for Q2 2006 from Telephia.

Thirteen million customers opt for an Internet and TV bundle. Internet and phone combinations are part of the package for 10 million households. Five million subscribers take part in a form of triple-play services: TV, phone and Internet. Quadruple-play packages bundle mobile services with home-based communications services.

In all bundle combinations, price, including promotions and discounts, is the most important factor when selecting a provider. Internet and phone subscribers rate price as a priority (42.8 percent); Internet and TV (46 percent); Internet, TV and phone (53.4 percent); and Internet, TV, phone, and wireless (60.9 percent).

Convenience rates second across the board, with roughly 10 percent in each bundle group. Service reliability rates third in factors customers consider when opting to bundle services.

“The key for service providers will be to develop pricing and product offers for each segment that drive bundling purchases and the long-term value of the customer,” said Kanishka Agarwal, VP of new products at Telephia.

The “Total Communications Survey” surveys a panel of communications users to derive its data.

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