Telephia Releases Study on Triple-Play Take-up

SAN FRANCISCO, September 5: According to research firm
Telephia, more than 31 million online homes in the U.S. subscribe to bundled
services—Internet, TV and telephony—from one provider.

The Total Communications Survey for the second quarter of
this year shows that double- and triple-play bundles were the most popular with
consumers. The Internet/TV bundle led all other service combinations with
nearly 13 million households, followed by 10 million households subscribed to
an Internet/phone combination. More than 5 million households subscribe to a
triple-play service, while approximately 300,000 subscribe to quadruple-play
bundles.

“Consumers gain a number of advantages from subscribing to a
bundled program, including cost-savings, integrated billing, and a single point
of contact for services,” said Kanishka Agarwal, the VP of new products at
Telephia. “The key for service providers will be to develop pricing and product
offers for each segment that drive bundling purchases and the long-term value
of the customer.”

Price was the leading factor to switching to a bundled
offering, but Agarwal noted, “While price is a key decision driver, bundle
purchasers are also looking for superior customer experience and will not
switch if they believe the new provider has worse quality. This is why all the
service providers are working swiftly to build their reputation for responsive
and reliable support.”