By the end of the decade more than half of broadband households will subscribe to a triple-play or quadruple-play bundled service, predicts a new study.
Annual revenue from bundled services in the United States will reach $119.5 billion by 2010, according to The Business of Bundled Services: Consumers, Models, and Uptake, a new study from Parks Associates. A bundled service is a service package from a single provider that features different combinations of landline voice, high-speed Internet, television and wireless voice services.
The study finds that at the end of 2005, only 39 percent of U.S. broadband households had subscribed to a bundled service and the majority of them had a dual-play service. Nevertheless, Parks Associates forecasts that if service providers adopt the right strategies, 55 percent of broadband households will subscribe to a triple-play or quadruple-play service by the end of 2010.
Simply touting a single bill and bundled discounts will not realize the full potential of bundled services, according to Deepa Iyer, a research analyst with Parks Associates. Service providers need to integrate different service features in a seamless way and build experience-oriented packages that fit the distinctive needs and lifestyles of various consumer segments.
For more information, visit www.parksassociates.com.
