US Businesses Bundling Telecoms

Business satisfaction with broadband and high-end data services has increased substantially in the last year, according to recently released results from J.D. Power and Associates. Perhaps as a result, buyers are looking for more cost savings, often by switching multiple services to the same supplier.

The 2003 Major Provider Business Telecommunications Services Study (SM) measures satisfaction with telecoms data services in two areas: broadband (DSL, cable modem, dedicated access) and high-end (frame relay, ATM and other packet/cell technologies). There are seven key measures: performance and reliability; billing; cost of service; sales representatives/account executives; company image; offerings and promotions; and customer service.

The study finds that the intention to switch providers to bundle multiple telecoms services is up 14% among broadband business customers to 43% overall, and up 6% among high-end data customers to 40% overall. Business customers looking to bundle services tend to have much lower satisfaction scores, with cost of service and customer service the two key reasons for dissatisfaction.

'Although overall satisfaction with broadband and high-end data services among business users has increased considerably over 2002, businesses are increasingly concerned about getting the best value for their telecoms dollar', said Steve Kirkeby, Senior Director of Telecoms Research. 'Carriers need to consider product bundles in their retention and acquisitions strategies to prevent this large group of customers from looking elsewhere'.

As last year, BellSouth ranks highest in customer satisfaction among broadband data business customers, topping the ratings in six out of seven factors and faring particularly well in the areas of sales representatives / account executives and company image.

Also repeating last year's result, Sprint ranks highest in customer satisfaction among high-end data business users, with the highest ratings in all seven factors. Sprint performs particularly well in the areas of sales representatives/account executives, billing and company image.

The study is based on responses from more than 4,700 US businesses, from very small (with at least two employees) to very large (500+ employees), and evaluates their data and voice services providers.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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