By Rich Nesin, General Manager and Resident Philosopher, HomePNA
AT&T's second-quarter results - just in - reported “continued strong growth in AT&T U-verse TV subscribers with a net increase of 248,000 to reach 1.6 million in service.” The release also reports that more than 75% of the U-verse TV subscribers choose a triple (with broadband and voice) or quad-play (with broadband, voice and mobile) option.
Since a HomePNA network is installed in each of those houses it's not only great for AT&T but for HomePNA members. It also provides continuing validation for the case we have been making about the value of bundled services.
And while we are on the subject of bundled residential services, Kurt Scherf from Parks Associates has released a new free whitepaper, IPTV and the Digital Home, that discusses the success of TelcoTV. Parks forecasts the number of Telco/IPTV subscribers to grow from around two million households in 2005 to over 35 million by the end of 2009 and addresses the question of why consumers might choose TelcoTV over more traditional video-centric offerings such as cable or satellite.
I like Parks' whitepapers. They focus on residential technologies and combine quantitative and qualitative data from all sides: consumers, manufacturers and service providers. “What has spurred this growth? The lesson from the significant increase in telco/IPTV subscribers over the past few years is that consumers choose to switch service providers for a variety of reasons and not necessarily to get that one “killer application”. When asked why they plan to switch providers for television services (among other services), consumers show a variety of churn triggers. They are about as likely to indicate that they’ve grown disenchanted with their current provider, that they’re expecting a significant up-front pricing deal, or that they expect better customer service as they are to indicate a desire for new features not available from their current provider.”
The accompanying chart shows money as a major but certainly not only motivator. “There are a variety of service features that, when implemented, could entice consumers to pick one provider over another. IPTV/telco service providers have a head start in offering some of these elements, which go beyond traditional TV”. Customer service is on the chart and "Telcos find themselves in the unique position of having a comparatively better reputation than their competitors for their customer support practices". HomePNA's remote management and diagnostic capabilities certainly play to that strength and promise enhanced capabilities for service providers that utilize them. The list, which includes other soon gotta-haves, goes on...