June 15, 2005

A new study performed by Insight Express, on behalf of Support Soft reveals that almost 82 percent of broadband Internet users are interested in receiving voice, video and high-speed Internet access services from a single communications provider.

The growing desire for these three main services from just one provider is likely to increase the competition between cable providers and telecommunications companies.

Currently, eMarketer estimates that the average US household spends between $100 and $200 per month on voice, video and Internet services, so it's not surprising that the competition between the telecom and cable industries is already heated.

eMarketer expects that cable broadband households will continue to outnumber DSL households through 2008, although the number of DSL households will grow faster.

The study contains good and bad news for both cable providers and telecoms. First, the good news, customers not only want the service, they think it will be an improvement.

When asked about whether they felt customer service would change if they received all three services from one provider, 37 percent thought it would "improve" or "improve significantly." Only 17.5 percent thought it would get worse.

The reason most often cited for switching to a single provider was that it would be "more convenient overall," followed by "only one bill to pay for all three services." Obviously, convenience is a key factor.

But, on the down side, there are switching barriers. Both cable and DSL high-speed Internet customers expect problems when installing VoIP or IPTV.

Among cable broadband customers, 68 percent anticipate some sort of issue when installing VoIP, and 60 percent of DSL subscribers expect to encounter problems during IPTV installation.

Furthermore, over two-thirds of broadband users are unsure or wrong about how VoIP and IPTV services will be installed.

"The survey findings indicate that there is an opportunity for both DSL and cable providers to gain a competitive advantage by meeting or exceeding customer expectations for all three services, starting at the point of installation," says Chris Grejtak, senior vice president at SupportSoft.

"More than just a competitive advantage, customer service is a critical requirement in combined IP-based voice, video and high-speed data delivery."

Source: eMarketer