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In-Stat Survey Indicates Solid Growth of Bundled Telecom Services.

SCOTTSDALE, Ariz. -- In-Stat (http://www.in-stat.com) research shows that just under half of the U.S. residential market has purchased multiple telecommunications services as a package from a single provider, up from just one-third in 2004. However, the potential for growth of bundled services is only tepid at best, with just 14 percent of non-subscribers expecting to adopt them in the next year, the high-tech market research firm said.

"In order to better capitalize on the bundled opportunity, providers must offer a variety of package choices to match the appropriate services with different customers' needs," said Amy Cravens, In-Stat analyst. "As research has shown, 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."

A recent report by In-Stat found the following:

--Providers typically scale discounts so that the more services that are purchased, the greater the savings. This strategy appears to be working, as 50 percent of respondents indicated that they purchase bundled services for the lower price.

--Significant revenue opportunities remain to further expand average revenue per user; however, new approaches are necessary to entice non-subscribers.

--Internet service was more often included in a bundle than local phone service or cable TV among survey respondents. This is interesting for the future of IP-based services such as Voice over IP (VoIP) and IP-based video services.

The report, "Triple Play? Bundling Strategies in the US Residential Market" (#IN0502204IA), includes results of consumer primary research to identify the demand for bundled service offerings and potential means of making such services more competitive. It features data showing how many consumers plan to purchase bundled services over the next 12 months according to various demographic categories.

For more information on this report, please visit http://www.instat.com/catalog/pcatalogue.asp?id=95 or contact Erin McKeighan at 480-609-4551 or emckeighan@reedbusiness.com. The report price is $3,495.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, assessments and market forecasts of semiconductors and advanced communications equipment and services. Our forecasts, analysis, and insights are derived from both a deep technology understanding and a unique research methodology, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical technology, product and success decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic marketplaces and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.
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Publication:Business Wire
Date:Jul 19, 2005
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