Saturday, April 21, 2007

So Maybe It's the Lead Offer...

...not the only offer. Most Western European consumers still buy Internet access separately from other services like fixed voice, VoIP, TV, or mobile, says Lars Godell, Forrester Research analyst. "Very few Europeans get either triple or quadruple play delivered in one integrated package," he says. U.S. bundle buyers might be more commonly found, but even in the U.S. market it is far more common to find dual play buyers than triple play.

Researchersa at The Yankee Group recently found that 41 percent of buyers chose a dual play package, compared with 23 percent for a triple play bundle.

Of course, it always takes some time before mass market buyers warm up to some new services and packaging techniques. Digital cable and satellite didn't reach their current penetration levels in a year or two. Also, promotions for triple play packages seem to alternate with "add voice" or "add video" or "add high speed Internet access" offers from either cable or telco providers. The thought, of course, is that there is less resistance to making a single change rather than changing two or three things at once.

Triple and Quad Play bundles may not be the most heavily purchased packages yet. But they are destined to remain the lead offers. Carrier need to drive higher average revenue per user and cement customers in place will take care of that.

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