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Study says more customers considering bundle from telecoms

Thu, 08/02/2007 - 9:36am
Mike Robuck

A new study released by the CFI Group said that more consumers would consider bundled services from telecom companies than the ones offered by cable operators.

The CFI Group’s “Telecom-Cable Industry Report” said that the higher customer satisfaction with telecom companies gives telecoms an advantage over cable companies as they battle for subscribers in a converged marketplace.

The study, which examined customer satisfaction for video, broadband Internet access and wireless communications, found that cable companies lag telecom companies in customer satisfaction - in all areas where they offer competing services.

Telecoms have partnered with satellite TV companies, which have superior customer satisfaction to cable. On the other hand, cable companies have aligned themselves with wireless carriers that have the worst customer satisfaction scores, as measured by the University of Michigan’s American Customer Satisfaction Index (ACSI).

“For many customers, it’s a choice between the lesser of two evils, but our research suggests that telecom has an opportunity to take advantage of its relatively superior customer satisfaction,” said Phil Doriot, program director for CFI Group. “That’s not to say that cable companies are out of the game. They’re just not accustomed to this kind of competition and have a lot of work to do if they want to keep customers from defecting.”

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