Let me drive

As much of the U.S. workforce returns from a three-day weekend, let me be the first to tell everyone to relax just a little more. Maybe if everyone in telecom, and especially the access sector, took the time to observe how consumers actually use and buy technology, we'd all make a little more money to spend on future vacations.

According to a report released today by In-Stat/MDR, almost one-third of consumers subscribe to more than one service from a single provider. From the telco perspective, that bundle is most commonly local and long distance, and if the telco market is to bump up its average revenue per user in a serious way, it must learn how to sell entertainment services. Whether it's over the Internet or via the television, consumers have consistently shown that they're willing to part with their hard-earned cash to be amused, titillated and entertained.

And therein lies a problem for the access market. I sometimes get the feeling that vendors are creating technology in a vacuum, without any consideration of how the real world may use it. Some of the demos you are apt to see in trade booths over the next six months, particularly those related to video and high-speed data, may indeed blow your socks off. But one always must step back and ask, "Will my users actually dump their existing provider for this feature?" Vendors in turn need to reconsider technology developments that appear to be solutions in search of problems.

Part of the issue revolves around how new bundled services are presented. Given most telcos' lack of experience in selling themselves as entertainment providers, access providers and other video gear vendors are now being called on to pull together some of the basic marketing and business planning. While such services represent a potentially significant new revenue source--and one with big, fat margins as well--vendors should use the opportunity to make the shift to a new thought process. Why not start the move to video by asking what really drives users to consider changing service providers and then implement technology based on those factors?

Want to tell me to get back to work? E-mail me at vvittore@primediabusiness.com.