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Wireless in the Consumer Telecom Bundle


Description: In revisiting 2005's report Wireless in the Consumer Telecom Bundle: Discounts without Convergence, there have been several significant changes and new learning:
- There is, indeed, convergence appearing in the telecom bundle; Cable companies and AT&T are both offering services across different networks and devices.
- Our surveys find that cable companies have the majority of the bundle customers with video and broadband packages. However, consumers who have a preference would rather buy bundles from telcos than cable companies.
- Telco and cable company bundles including broadband have very high penetration at near 60%, suggesting that further growth may be limited. However, one-third of respondents who plan to purchase a bundle within the coming year hope to include wireless.

This report includes subscriber forecasts for the US wireless/cable joint venture through 2011.


Contents: In This Update
At Last: Convergence but Lack of Discounts
Introduction: The US Telecommunications Market is Changing
AT&T/BellSouth/Cingular
Sprint/Cable Joint Venture
2005 Report Conclusions
Wireless Carriers Not Considered Bundlers
More Bundles Should Include Wireless
Bundled Offerings
Verizon
QWEST
AT&T
Sprint Nextel/Cable Joint Venture
Cox Communications
Time Warner Cable
Comcast
Survey Results
Current and Preferred Bundle Providers
Components of Telco and Cable Bundles
Value of Bundles
Expected Bundle Purchash
Interest in Cable/Wireless Bundle
Forecasts—Cable Joint Venture Wireless Customers
2007 Market
Forecast Assumptions
Assessment
Cable Companies can Stretch Their Leads
Bundled Broadband Market Appears to be Nearing Saturation
Value of Wireless in the Consumer Telecom Bundle
It’s Good to be a Telco and Better to be Verizon
Weak Consumer Interest in Video-to-Wireless Service
Appendix 1—All Bundle Responses and Methodology
All Current Bundles by Carrier Type
Survey Methodology
Appendix 2—Survey Questions

List of Tables
Table 1. Components of AT&T Bundles that Include Wireless
Table 2. Cable Joint Venture Subscribers and US Market Share
Table 3. Cox Mobile Access Multimedia Services Packages (Others Similar)
Table 4. Preferred Telco Bundle Provider
Table 5. Types of Bundles, Individual Bell Companies
Table 6. Willingness to Switch Carriers by Current Bundle Source
Table 7. North America Sprint Cable Joint Venture Wireless Subscribers 2007–2011
Table 8. All Telco Bundle Combinations from Survey
Table 9. All Cable Bundle Combinations from Survey
Table 10. All Wireless Bundle Combinations from Survey

List of Figures
Figure 1. Forecast: US Cable Joint Venture Wireless Subscribers (Subscribers in Thousands)
Figure 2. Actual vs. Intended Bundled Services (2005 Survey)
Figure 3. Cable/Cellular Joint Venture Services—Mobilizing the Triple Play
Figure 4. Current and Preferred Bundle Providers (Base: Those Expressing a Preference)
Figure 5. Components of Telco and Cable Bundles
Figure 6. “Would You Switch Carriers to Purchase Bundled Services?”
Figure 7. Reasons for Adopting Bundled Services
Figure 8. Barriers to Adoption of Bundles (Base: Do Not Purchase Bundles)
Figure 9. Planned vs. Current Bundled Services
Figure 10. Plan to Purchase Bundle within 12 Months: Expected Carrier Type
Figure 11. Interest in Converged Video/Wireless Service (Base: Use a Cell Phone)
Figure 12. Willingness to Change Carriers for Converged Video Wireless Service (Base: Extremely, Very or Somewhat Interested)


Companies Mentioned - Verizon - QWEST - AT&T - Sprint Nextel/Cable Joint Venture - Cox Communications - Time Warner Cable - Comcast


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