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Consumer Communication Services Preferences: Enter Broadband Network Service Operators

  • March 2015
  • 26 pages
  • Frost & Sullivan
Report ID: 2780796

Summary

Table of Contents

Executive Summary

Over the last five years, Stratecast has conducted its annual consumer communication services preferences surveys—a key stone for the rest of the research conducted throughout the year—to understand consumers’ perspectives of communication services, and to help service operators navigate through this dynamic industry.

In last year’s Consumer Communication Services Preferences report, Stratecast discovered that the quad play is a new dual play, which consists of landline and wireless broadband.1 After analyzing data from this year’s consumer preferences survey, it has become more evident that the market is continuing to shift to a dual play modality. This shift is a result of applications and services becoming increasingly over-the-top.

Consumers are also finding it more convenient and economical to access voice and video services over a broadband network. In fact, Stratecast’s quarterly tracking data agree with this trend. During the last two years, in the video market, subscribers from cable and satellite operators have declined because of IPTV and over-the-top services. However, overall, the North American services market—which includes voice, video, broadband, and wireless—is alive and well because innovative services are driving competition, and changing the dynamics of the communications industry. Stratecast projects that both broadband and wireless markets will continue to increase their subscriber and revenue platforms; while the voice market continues to decline, and the video market (satellite, cable, IPTV) remains flat, as conventional TV operaters continue to loss subscribers. It bears noting that cable and satellite operators are compensating for their loss of subscribers by increasing the price of their services.

Clearly, broadband is becoming an important enabler of the service space. Stratecast projects the number of broadband service subscribers to overtake video service subscribers in the near future. Operators not engaging in innovative services over a broadband network will find it hard to compete in such a volatile market.

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