Research intelligence from Parks Associates reveals that by 2010, more than one-half of broadband households will subscribe to a triple play or quadruple play bundled service.

 

In an era of merging technologies, bundled services are proving more desirable among consumers and businesses for communication needs. According to "The Business of Bundled Services: Consumers, Models, and Uptake”, annual revenue from bundled services in the U.S. will reach $119.5 billion by 2010.

 

Bundled services focus on a combined business model, offering up competition for service providers. But it’s not just about one low monthly bill.  

"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," said Deepa Iyer, a research analyst with Parks Associates.

 

"The Business of Bundled Services: Consumers, Models, and Uptake" finds that at the end of 2005, only 39% 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% of broadband households will subscribe to a triple-play or quadruple-play service by the end of 2010.

 

"In this age of IP convergence, service providers, including ILECs, cable MSOs, and satellite carriers, have realized the importance of bundled services for the long-term viability of their business models," said Iyer. "Although bundled services are at an early stage, service providers are beginning to experience increased customer retention."