September 30, 2008

Study: Subs Want Telco Bundles

Consumers would prefer to bundle communications services with telcos by a 2 to 1 margin to cable companies if given the choice, according to the second annual Telecom-Cable Industry Satisfaction Study from CFI Group. However, cable companies still provide bundled communications to twice as many consumers surveyed as do telecom companies.

The survey of more then 1,200 households, which examined customer satisfaction for video, broadband Internet access, and wireless communications using the methodology of the University of Michigan's American Customer Satisfaction Index, found that customer satisfaction provides telecom companies with a competitive advantage. As the telcos roll out high-speed fiber services across their networks, they will be able to challenge cable company dominance in bundles, high speed Internet and video.

The study identified high rates and poor customer service as the two biggest reasons customers would consider leaving a cable provider of communications bundles. For telcos, customers cite the need for faster access as a primary reason for switching. Video services like AT&T's U-Verse IPTV and Verizon's FiOS are beginning to make their mark, and 2 percent of survey respondents are already using video services from a telco.