ROW International News Briefs
News | April 21, 2004
Bundling wireless services beneficial to carriers
There has been a dramatic increase in the number of U.S. consumers who purchase bundles of services, which can include local and long distance calling, Internet access, cable and satellite TV, and wireless, according to new research from In-Stat/MDR. The high-tech market research firm finds that 28.6% of consumers purchase multiple telecommunications services from the same provider. This is up from single digit numbers recorded two years ago. In-Stat says in its report that not only do bundles offer substantial benefits to consumers, telecommunications carriers also realize benefits such as reduced subscriber churn and improved ARPU. Despite the use of bundles’ benefit on churn, In-Stat writes in a separate research report that it expects churn to head up this year due to the availability of wireless number portability. "However, the high-tech market research firm believes that, with the kinks ironed out and with more cellular contracts expiring, churn is bound to increase in both the consumer and business environments."
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