DSL customers plug into service bundles

New research reveals a major increase in the proportion of communications services bought in bundles, particularly by DSL users.

The most recent BBUS Consumer Survey reported an 11 per cent drop in non-bundle subscriptions in the 12 months to January 2008.

Analyst firm Point Topic described this drop as "a significant change" as the take-up of bundles has always been led by cable subscribers.

The report found that 80 per cent of cable customers now bundle broadband with fixed line access, and 68 per cent bundle TV.

But the BBUS poll of 5,805 respondents conducted for Point Topic by YouGov and Ipsos Mori revealed that it is ADSL customers who have driven growth in bundled services in the past six months.

"This is mainly due to the rapid increase in local loop unbundling during 2007 which has enabled more operators to offer their own services in more areas, " said Pamela Varley, research analyst at Point Topic.

Bundles are having a significant impact on the fixed-line market, according to the survey. BT's share of the fixed-line market in households with internet access has dropped below 50 per cent for the first time and the decline is accelerating.

The main gains in market share have been among smaller operators, while major players like Virgin and Carphone Warehouse have seen small gains at best.

Subscribers to service bundles usually choose 'telephone plus broadband' or 'telephone plus television'.

The winners in the television stakes are, not surprisingly, Sky and Virgin which have increased their market penetration in the past six months primarily at the expense of standard terrestrial delivery.

However, Point Topic noted that there are other options opening up to consumers as IPTV starts to make an impact.

"Consumers are taking advantage of the price incentives and convenience that consolidating their services offers," said Varley.

"Operators are keen to see this trend continue as it is much easier to keep customers who have bundles than ones with just a single service."

See also:

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