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Consumers See Birth of Cable Phone As Bundle of Joy

Posted on: Monday, 6 June 2005, 09:00 CDT

For many Americans, getting more home technology from fewer places is a concept that rings loud and clear, according to the latest Pulse survey commissioned by the Cable & Telecommunications Association for Marketing (CTAM). According to the survey, a majority of consumers (57%) continue to be interested in bundling all telecommunications services under a single provider.

"The trend is clear. Consumers like the idea of one company delivering all of their entertainment, information and communications services - and they're seeing their cable companies as the source," said Char Beales, President and CEO of CTAM. "They realize that by bundling video, phone and Internet products, they can eliminate the inconvenience of dealing with multiple providers and reduce costs. It's music to their ears."

Now more than ever, consumers are considering this new technology that is changing what it means to make a phone call in the 21st century. In fact, nearly one-third (29%) of digital and premium cable customers (32%) are interested in leaving their current telephone service provider to receive phone service from their cable company. Additionally, basic cable subscribers (23%) are more interested in phone service from their cable company than from a non-cable VoIP provider (11%).

Consumer interest goes far beyond basic phone service:

-- Forty percent of basic cable customers are also interested in having their local cable company provide long distance

-- Half (50%) of basic cable customers are interested in local phone service (which marks a dramatic 13 percent increase compared to last year)

-- More than one-third (38%) of basic and 44 percent of digital cable customers are interested in cellular phone service from their cable company

The Basics and Beyond

The newest service in the cable roster, cable phone or digital voice services simply mean consumers get phone service using their reliable cable connection. What's the difference between cable phone and other phone services?

Here's what consumers get with cable phone service:

-- All the same great features that one would expect from any residential telephone service, with no complicated calling plans

-- Cost savings right off the top, plus additional savings by bundling phone service with the other advanced services cable offers, such as high-speed Internet and digital cable

-- Greater convenience: one connection for multiple services means one bill from one company

-- It's easy. The cable company installs a simple broadband connector to your current phone system, and customers can call anyone, anywhere, regardless of their phone technology

The CTAM Pulse surveys examine the latest trends in the entertainment and telecommunications arenas including home entertainment technologies, telephone and broadband services on a bi-monthly basis.

This Pulse is based on a telephone survey conducted by Centris (Communications, Entertainment and Technology Research and Information Service) as part of their Access survey from April 20 to 27, 2005. The sample includes 1,013 randomly selected U.S. consumers aged 18 years of age or older. Sixty-five percent of weighted respondents are cable customers, including 28% who have premium cable and 22% who have digital cable. Twenty five percent of respondents are satellite television customers. The study has a 3.1% margin of error.

For more information on cable services, visit www.onlycablecan.com.

The Cable & Telecommunications Association for Marketing (CTAM) is dedicated to helping the cable industry grow by advancing consumer and business-to-business marketing excellence, facilitating collaborative efforts, and encouraging the mastery of new technology-based products. CTAM supports its more than 5,300 members with conferences, consumer research, publications, Web sites, regional chapters, and the CTAM Educational Foundation's Executive Management Program at the Harvard Business School. In addition, consumers can learn more about the benefits of cable through national CTAM initiatives, such as OnlyCableCan (SM).

Source: Business Wire

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