AGOURA HILLS, Calif.-According to a recent J.D. Power and Associates study, nearly half of telecom service customers polled expressed interest in bundled services from just one telecommunication company.
The report showed that convenience, or the desire to receive a single bill and deal with only one company, is the most important factor in determining consumer interest in bundling telecom services.
Interest in local telephone companies as the preferred single provider of bundled services climbed from 48 percent in a 1998 study to 54 percent in the 1999 report.
The analysis also revealed that consumers subscribing to multiple services from a single provider are more satisfied with their provider than unbundled subscribers and are less likely to change providers in the future. While the report showed that bundled customers tend to spend less per month on services than unbundled customers, the bundling strategy can lead to stabilization of a provider’s revenue base.
“With the number of convergent households doubling from just two years ago, convergent carriers will continue to take significant revenue away from traditional long-distance companies,” noted Sheryl Russell, director of communications services at J.D. Power and Associates.
