Satellite Bundle ManiaTelcos turn skyward in cable battle ( old news - 11:01AM Tuesday Jul 22 2003) tags: satellite · telco While companies rush to provide bigger, cheaper and more impressive bundles, research shows that consumer interest in such products has dropped considerably. This week has been filled with news of companies expanding their bundle offerings. Both Qwest and SBC announced they'd stuck deals with Echostar to provide satellite television in the hopes of luring customers away from cable. However even cable companies like Cablevision joined in the fun, hoping to provide more choices for consumers. But a new survey from Solomon Wolff Associates shows that while companies are busy offering better bundles, that doesn't necessarily mean consumers are interested in them. In fact if the survey can be believed, interest among consumers in bundled services is estimated to have dropped more than 40 percent in the past three years. The question would appear slightly suspect however; 6,400 consumers were asked if they would buy local, long-distance and wireless phone service, cable or satellite television and Internet access from the same company "for about the same price as they are paying now". A little less than half found the idea appealing. Though isn't the idea of bundling to reduce costs for services? The bundling tactic often intentionally makes it difficult to determine if you're actually getting a deal or not. While some bargains offer a good bang for your buck, many analysts still recommend shopping around for separate communications needs, particularly long distance, in order to get the best bargains. While providers often pitch bundles as cost saving and consumer friendly, critics of the plans charge that underneath the sales pitch, many of the plans offer questionable savings with numerous murky restrictions. "They're intentionally designed to be confusing to consumers in order to minimize the amount of price comparison," noted one analyst earlier this year. "If everybody offered a homogenous product, customers would always select the product with the lower prices," he says. "So firms have an incentive to not provide identical products."But with the telcos losing to the cable industry in the broadband battle, giving what often is simply the illusion of a bargain could drive consumers one way or the other. With VDSL and fiber still too costly for broad-scale deployment of quality video services, throwing satellite service into the mix will be their attempt to offer more choices under the sometime illusionary guise of cost savings. Related:- Thursday Evening Links
- Friday Evening Links
- AT&T Partners with DirecTV
- Monday Morning Links
- Wednesday Evening Links
- Monday Evening Links
- Tuesday Morning Links
- Tuesday Evening Links
|
  CPM
join:2001-08-24 Miami, FL | E.T. Phone home That is right E.T. left earth and left telco with a big phone bill.
I see it now some CEO's. Are going to do the same with Satellite Service. | |
|  |  |  |   ArchAngel21x I miss Final Fantasy XI Premium join:2001-10-28 Lincoln, NE
·Internet Nebraska
edited
| Damned If They Do/Don't It seems to me that the companies are stuck. If they don't offer discounts to people who get more than once service from them, people complain. Once they do offer a discount for buying more than one service, people complain they are being penalized for wanting only one service. So the one million dollar question is how do you please both groups of people? -- Death Is Irrelevant. [text was edited by author 2003-07-22 11:57:27] | |
|  |   oliphant5 Got Identity? Premium join:2003-05-24 Corona, CA
edited
| Re: Damned If They Do/Don't How do you please everyone?
You be honest about the bundling.
You don't pull a friggin' Comcast and magically raise the rate $15 (over 30% increase), then claim that those with CATV and HSI suddenly get a $15 "discount". You don't pull a Verizon and charge a good rate of $35 for DSL while requiring the customer to take their overpriced POTS and local voice service. There's no discount as they charge $15 more than they should for the "features" that people generally want like caller ID or wishing to not be listed in their phone directory.
What SBC is doing is not only giving the discount off their normal DSL rate but also a small discount off of the normal DN price. That's a real deal (so long as they don't continue raping customers with consistent price increases for POTS related services). -- "Countries...have a right to be free, and we a right to aid them, as a strong man has a right to assist a weak one assailed by a robber or murderer." --Thomas Jefferson, 1816. [text was edited by author 2003-07-22 12:12:59] | |
|  |  |   amenite The Soylent - It's People Premium join:2002-11-21 Ridgewood, NJ clubs:
| Re: Damned If They Do/Don't said by oliphant5 : How do you please everyone?
You be honest about the bundling.
You don't pull a friggin' Comcast and magically raise the rate $15 (over 30% increase), then claim that those with CATV and HSI suddenly get a $15 "discount". You don't pull a Verizon and charge a good rate of $35 for DSL while requiring the customer to take their overpriced POTS and local voice service.
Or pull a Cablevision/Optimum Online ruse where you offer the service for $29.95/month, then magically raise the rates by 50% in a little over 1 year's time, and reduce the "discount" by 50% also, to a marginal $5 for those with family cable or above. -- Time is an abstract concept invented by carbon based life forms to monitor their constant decay.-Thunderclese | |
|  |  |   Unit649 I B U, Who U B? Premium join:2000-01-22 Stockton, CA
·Comcast
| Not shocking, the inventors of the bundle were cell phone companies, alot of them ran by phone companies. Those execs have now moved into the wired or cable companies and are spreading this stuff.
Just like on TV when you see something for $19.95. Its twenty bucks, we know it is.
But heck, I can't talk, I walk into best buy, see a router or something for $199, then read the fine print saying (after $50 rebate, takes you 8 weeks to get it, today you pay $249) and I go for it. Thats why the companies do it-it does drive sales, gets the product into the home. -- U ::::Founder, ForeverChat IRC Network:::: »www.foreverchat.net | |
|  |  |  |   dvd536 as Mr. Pink as they come Premium join:2001-04-27 Phoenix, AZ
| Re: Damned If They Do/Don't said by Unit649 :
But heck, I can't talk, I walk into best buy, see a router or something for $199, then read the fine print saying (after $50 rebate, takes you 8 weeks to get it, today you pay $249) and I go for it.
its basically charging you LIST PRICE then making you jump thru all sorts of hoops to get it for the price that you would have gotten it at had you bought it at a non rebate store. supermarket club card stores do the same thing altho keeping records of your shopping habits and you get the same price that you would at a non card store. -- You can never be too rich, too thin or have too much Bandwidth | |
|  |  |  |  |   Unit649 I B U, Who U B? Premium join:2000-01-22 Stockton, CA
·Comcast
| Re: Damned If They Do/Don't I jump through the hoops, trust me. I'll get my $50 back if I gotta give blood to do it  -- U ::::Founder, ForeverChat IRC Network:::: »www.foreverchat.net | |
|  |  |  |  |  |   BrianDamage We Are The Hounds From Hell Premium join:2001-08-14 Rowlett, TX clubs:  | Re: Damned If They Do/Don't So the grocery stores will have your personal info and shopping habits on file, and Best Buy will have that AND your DNA profile....NOT a good idea at all...... -- "It's a dog-eat-dog world, and I'm wearin' milk bone underwear." | |
|  |  |  |  |  |  |   Unit649 I B U, Who U B? Premium join:2000-01-22 Stockton, CA
·Comcast
| Re: Damned If They Do/Don't Sure they will. Not like its that hard to anyway, even if I was to not have a discount card, my credit card company and/or bank could tell where I shop anyway without any intervention from them. Unless of course I go to a cash only basis, but then my money will make me no money at all, even though 1% or less is pathetic for interest nowadays, its inconvienent to carry cash as well as unsafe, and I somehow have to make a little money with my money anyway. Can't do that without banks or anonymously.
No matter what I do, somehow I will be tracked. Besides, my DNA profile is out there too, well close enough to it, being a security guard I have to be fingerprinted and subjected to rubber glove/drug tests frequently so I'm going to have alot of me on file, well, alot more than the average person at least. I have to be able to drive, so the state will know who I am, and they get my thumbprint and SS# with that. Have to have a gun carry permit to do my job, so now the feds have my info for that.
I actually shop at a grocery store that doesn't use cards. But since they have a no debit card policy, its write a check or hit the bank for $100 each time I go. Thats not convienent, so wallah-my purchases can easily be tied to my name and tracked.
If I ever get sick, I'll go to a medical facility and have who knows what taken from me. Supposedly its used for testing, but who knows-anything could happen to that sample-it could be placed into a database for all I know!
Either way, I'm gonna be tracked. I might as well benefit from the tracking and get discounts on stuff out of it. Its either that or pay full price, walk, and....well, can't live anywhere nowadays without providing a name and a social security number either.
I'm gonna be found no matter what I do to try and hide it. I hope they find the data they collect on me to be interesting. I'm sure it builds them an interesting profile, and it helps them to 'target' me for certian discounts and ads. Not much I can do about it, so I might as well sit back and enjoy it. The worst thing that will happen is some of their junk mail will help me start a fire to keep myself warm in the winter I guess  -- U ::::Founder, ForeverChat IRC Network:::: »www.foreverchat.net | |
|  |   dvd536 as Mr. Pink as they come Premium join:2001-04-27 Phoenix, AZ
| said by ArchAngel21x : So the one million dollar question is how do you please both groups of people?
You work on the quality of the services you offer then you wouldnt have to penalize people for taking the better deal. (most of the time people go satellite because of better quality, not a cheaper price) - you dont get penalized on your cable tv for not having HSI so why should HSI only users get penalized? (the maintenance charges are factored into both products) -- You can never be too rich, too thin or have too much Bandwidth | |
|   BrianDamage We Are The Hounds From Hell Premium join:2001-08-14 Rowlett, TX clubs: 
| bundling can be a ruse People are losing interest in bundled services because they are smarter now than before in this area. Maybe since people have paid more attention to their bills, they have started to see that bundling haven't saved them any money. As the one analyst noted, "bundling is usually done in such a way that the packaging is intentionally confusing, making price comparison among other offerings difficult." Bingo. Most people will let the comparison go also once they are confused enough, and these companies know this. -- "It's a dog-eat-dog world, and I'm wearin' milk bone underwear." | |
|  Y2KickIT
join:2003-06-29 Mcminnville, OR
| Bundling only attracts a happy customer The key to bundling is a happy customer. You must have service quality you like and a relationship you trust with your provider.
What a concept!
As we now have largely unregulated monopolies, they don't care what you think or how you feel, your on the hook with little options.
Yet someone in marketing still wants to squeeze more $/customer and thinks Bundling! We will incent the customer to buy more!
When the only thing the customer wants is a service that works with no hassle and a price that make the purchase a no brainer. | |
|  | |  |
|
|