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U.S. Bundled Consumer Services Forecast

Annual revenue from bundled services in the U.S. will reach $119.5 billion by 2010, according to "The Business of Bundled Services: Consumers, Models, and Uptake," a new study from Parks Associates. A bundled service is a service package from a single provider that features different combinations of landline voice, high-speed Internet, television, or wireless voice services.

"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 Deepa Iyer, a research analyst with Parks Associates. "Although bundled services are at an early stage, service providers are beginning to experience increased customer retention."

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

"Simply touting 'one bill' and bundled discounts will not realize the full potential of bundled services," Iyer said. "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."

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