By Rich Nesin, General Manager and Resident Philosopher, HomePNA
I recommend you check out “Broadband Services: The Turning Point”, a new (and free) whitepaper from Parks Associates. Like some of their other papers, this one is rich with direct customer data (of course the questions, analysis, and conclusions are Parks’). One interesting item that doesn’t surprise me is that bundles correlate to higher customer satisfaction. HomePNA is all about enabling bundled services and we see the interest from service providers every day. It also states that a higher percentage of fiber broadband customers subscribe to bundles than cable or DSL customers – and that fiber broadband customers are the most satisfied. I guess you have to buy the complete paper to see why but we can guess.
The paper also holds that half of the US broadband households are not aware of the broadband speed they are receiving. Not too surprising to a Speedtest addict like me -- you measure a blazing 16 Mbps downstream rate and then see videos downloading at 300Kbps.
And I’m betting these trends will continue -- especially as service providers like AT&T start to leverage their bundles (AT&T announced last week that it is offering its first discounted wireless-U-Verse bundle ). And, as we’ve seen before, a highly satisfied customer is much more likely to stay than a satisfied customer; while a highly dissatisfied customer is much more likely to leave than a merely dissatisfied one.
As the market shakes out and service providers achieve the high quality “core services” and bundles they need to compete, Parks (and I) think the focus will move to the value add services. This is where they will really be able to differentiate – and by doing a lot more than allowing a few over-the –top applications.