Why Bundling Might Be the Future of Telecommunications
Communication Cos. Are Combining Their Services Onto a Single Statement
BY JOHN HULL
The world of telecommunications has changed significantly over the last 10 years. Back in 1993, most people didn’t have wireless phones, fewer had Internet access, and broadband was a yet undefined term to the majority of the population.
Today, odds are good that nearly everyone over the age of 15 has a wireless phone and many enjoy high-speed Internet connection at work. Those without a broadband connection at home have likely considered it and the switch from dial-up to broadband might be in their foreseeable future.
The past decade has brought not only great technological innovation, but an increase in the variety of choices available to consumers and businesses. Increased competition brings excellent pricing for consumers as providers compete for their business.
The downside is that as consumers and businesses add services, they’ve added to the number of separate bills and separate providers. Hence, the popular trend of bundling.
– Consolidating Services Can Result in Savings
A recent J.D. Power and Associates survey revealed that more than 43 percent of consumers would prefer to get all of their telecommunications services from the same provider. The benefits are numerous. Consumers and businesses benefit from the convenience of receiving one bill, and having one point of contact for their service needs. They also benefit from cost savings typically available through packaged deals.
Bundling local and long distance service is the most common bundle and is growing in popularity. Customers subscribe to long-distance, DSL Internet, or wireless in addition to their local telephone access line.
For business customers, new “all you can dial” plans have marked a dramatic shift in the telecommunications landscape. Unlimited calling plans eliminate the per-minute local calling rates that businesses in the state have traditionally paid, in addition to offering limitless domestic long distance.
Relatively new to the mix, but also gaining in popularity, is the ability to add Internet service and wireless services to the bundle and pay for it all on one bill. Many telecommunications and cable providers offer dial-up and high-speed Internet service and provide a discount to customers that purchase multiple services. Telecommunications providers are bundling wireless with wireline service to provide customers with the convenience of wireless and reliability of wireline. New services help customers move seamlessly between their two communications devices. For example, a communication company recently announced plans to offer customers a bucket of wireless long distance minutes that can also be used to place long distance calls on home landline phones.
– Customers Can ‘Pick And Choose’
Smart communications companies are looking at what additional services their customers want , finding a way to offer them, pursuing partnerships with vendors that offer complementary services, and offering a bundled package.
The best bundles today are flexible and offer customers choice. Customers prefer to pick and choose the services they want, leaving behind the items they don’t need. Many of today’s plans allow customers to build their own bundles, selecting from a variety of services and having the ability to tailor communications services based on their own needs and budgets a significant departure from “one size fits all” offerings of the past.
Bundling is here to stay. The true winners are business and consumer customers. The ability to aggregate some or all services, receive significant price discounts, a single bill, and a single point of contact rewards customers with greater savings and convenience.
Hull is area vice president for SBC Communications.