Cable Companies Winning Against Telcos In Bundled Services - InformationWeek

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Cable Companies Winning Against Telcos In Bundled Services

Fully 90% of homes that have the so-called "triple play" of TV, voice, and broadband services are cable TV subscribers.

Cable companies are leveraging their infrastructure and customer relationships to hold on to a commanding lead over telecom companies in the battle to sell bundled services of TV, voice communications and broadband, a market researcher said Friday.

Fully 90% of homes that have the so-called triple play of services are cable TV subscribers, Knowledge Networks of Menlo Park, Calif., said.

"When it comes to selling bundled services, cable providers have a tremendous head start on their competitors," David Tice, director of KN's Home Technology Monitor unit, said in a statement. "It may be some time before satellite and telephone companies can pry loose significant market share from the cable industry, which is gaining even more customers with 'triple-play' discounts."

Broadband access is a major factor in driving multi-service subscriptions, with 48% of homes with high-speed Internet connectivity reporting bundling. Among broadband homes, 47% had Internet service with TV service, 13% had telephone service with TV, and 2% had cell phone service with TV.

Selling bundled services is a key strategy among cable operators and telecom companies to boost revenues. Telecom companies have spent billions in recent years in order to provide video-on-demand over their networks.

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