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Limitations of Broadband Service Bundling

Ken Pyle, analyst of the U.S. independent telco market and Managing Editor, Viodi View, has a new commentary entitled "Will the Bundle Be Enough?" -- insights include the following key points.
Mitch Clark, Executive Vice President of Marketing Operations for UPC Broadband, suggested that successful bundles target lifestyles and give customers choice. At the same time, operators must communicate the benefits and value of the offering in simple terms; in the language of their customers. Clark suggested that simplicity goes beyond communication and includes the ability for customers to self-provision services and having monitoring systems that indicate to customer service representatives the types of services a customer has and what they might want.

Ultimately, the bundle will not be enough for an independent telco to remain competitive. The key to future competitiveness will be able to continually add value to the bundle with the addition of new features that are well communicated to the customer base and that are competitively priced. These things, coupled with an independent telco's exemplary local service, will allow an independent telco to maintain a competitive edge in today's bundled world.

When the current mania for multi-play bundling declines, then we can have a meaningful dialogue about the challenges of being a broadband service provider in a sea of bundled sameness.

Technology-centered and even the more evolved product-centered service providers naturally gravitate towards multi-play bundling, because it gives them yet another opportunity to focus on themselves -- instead of their customers. The attraction is too compelling for them to resist.

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