2014-04-04 06:09:02 - Consumer Communication Services Preferences - a new market research report on companiesandmarkets.com
United States Congress and the FCC in the Telecommunications Act of 1996, the Holy Grail for network operators has been to offer a complete quad play: voice, video, broadband access, and wireless. In fact, market players who could not do so were perceived to be at a significant competitive disadvantage. However, with the advent of pervasive Internet access, survey data indicate that the market is evolving towards a new dynamic: one in which services are simply applications that ride on an Internet Protocol (IP)-based connection. And, this connection can be wired or wireless.This year´s Consumer Communication Services Preferences Survey indicates that consumers, worried about their economic futures and the implications of new government programs, such as the Affordable Care Act,
are increasingly focused on the value proposition that their communication services deliver. Given this concern for value and utility, many consumers have discovered that for services such as voice telephone and subscription television, a broadband connection is enough. Furthermore, mobility, which now has penetrated every age and income demographic, provides a strong data-enabled connection wherever the consumer might be. Armed with these broadband connections to access services, many consumers are finding that they need buy nothing,Survey data does indicate that consumers are still interested in bundled services. In fact, given the option of buying services Ã la carte or in a bundle, most would prefer a bundle. This preference is currently driven by a need for convenience and to obtain a better overall price for services. Correspondingly, Stratecast is seeing increasing consumer preference for the capabilities that a bundled package provides.Yet, the new bundle that is evolving is unlikely to be a quad play (voice, video, Internet access, and wireless), but is increasingly a dual play of landline and wireless broadband. Services, increasingly, are looking more like applications, and are easily downloaded from an app store. Consumers are already voting with their wallets; and, as more conventional communication services become virtualized as over-the-top offerings, they will decide that such services are not only desirable, but also more convenient.Operators, of course, will need to begin evolving the ability to offer a branded service experience rather than just branded functional services. This transformation will require substantial investments in service automation, and hard examinations into pricing schemes, bundle composition, and a new regulatory regime.So, 2014 is likely to be the year of the new quad play: with two primary delivery modalities (wireless and landline broadband) and an infinite number of service offerings delivered over those connections. This evolution is happening, and happening quickly.Â Â Â
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