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July 19, 2005

'Bundled' Telecom Services Favored By Home Subscribers

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Nearly half of U.S. telecommunications residential subscribers have purchased a bundle of multiple services from a single provider, according to a report released by market researchers In-Stat on Tuesday.

Consumers purchasing packages of services have jumped to 50 percent of residential subscribers from just one-third in 2004, In-Stat reported. A popular selling point of bundled services is the tactic of offering a lower price for a combination of features. The measure appears to be effective; In-Stat said half of the subscribers polled indicated the lower price attracted them to the bundle.

Providers also often aim their packaged offerings at different categories of subscribers. "Different age groups and income levels represent different interests and the best of bundled offerings will account for these differences in package design and promotion," said In-Stat analyst Amy Cravens, in a statement.

The most popular feature in bundles for both phone service and cable TV appeared to be Internet service.

In spite of the popularity of bundled services, In-Stat said only 14 percent of non-bundle subscribers appear to be interested in purchasing a package of services, leading the market research firm to remark that future growth for bundled looks to be "tepid at best."

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