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U.S. Bundled Services Revenue to Surge in 2010

For Immediate Release
Contact: Jenny Barrett, Chelsey Tyson
Parks Associates

U.S. Bundled Services Revenue to Surge in 2010
By 2010, more than one-half of broadband households will subscribe to a triple-play or quadruple-play bundled service

Dallas, Texas February 2, 2006 - Annual revenue from bundled services in the U.S. will reach $119.5 billion by 2010, according to The Business of Bundled Services: Consumers, Models, and Uptake, a new study from Parks Associates. A bundled service is a service package from a single provider that features different combinations of landline voice, high-speed Internet, television, or wireless voice services.

"In this age of IP convergence, service providers, including ILECs, cable MSOs, and satellite carriers, have realized the importance of bundled services for the long-term viability of their business models," said Deepa Iyer, a research analyst with Parks Associates. "Although bundled services are at an early stage, service providers are beginning to experience increased customer retention."

The Business of Bundled Services: Consumers, Models, and Uptake finds that at the end of 2005, only 39% of U.S. broadband households had subscribed to a bundled service and the majority of them had a dual-play service. Nevertheless, Parks Associates forecasts that if service providers adopt the right strategies, 55% of broadband households will subscribe to a triple-play or quadruple-play service by the end of 2010.

"Simply touting one bill' and bundled discounts will not realize the full potential of bundled services," Iyer said. "Service providers need to integrate different service features in a seamless way and build experience-oriented' packages that fit the distinctive needs and lifestyles of various consumer segments."

The Business of Bundled Services: Consumers, Models and Uptake analyzes the changing dynamics of the bundled services market. The report offers insight into ideal service mixes, customer groups, and emerging models for bundled services. It provides guidance to service and value-added solutions providers to design and execute better market strategies that maximize ARPU and increase customer retention. For additional information about The Business of Bundled Services: Consumers, Models and Uptake, visit www.parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, multiclient studies, consumer research, workshops, and custom-tailored client solutions. Parks Associates also hosts Fall Focus and co-hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com