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Bundling Offers Simplicity and Savings for Businesses

Published by: In-Stat

Published: Sep. 25, 2003 - 28 Pages


Table of Contents


Executive Summary
Methodology
Introduction
Definition of Bundling for Business
Benefits of Bundling
Survey of Business End-Users
Survey Sample
Purchasing Behavior
Services Preferred in a Bundle
Desired Benefit from Bundling
Expected Discounted Pricing
RBOC Regional Results of the Survey
Regional Purchasing Behavior
Services Preferred in a Bundle By Region
Service Provider Profiles
RBOCs
SBC
Verizon
IXCs
AT&T
MCI
Sprint
CLECs
Cox Communications
Covad
Forecast of US Small/SOHO Business Bundling Market
Conclusion


List of Tables


Table 1. Forecast of Number of Small/SOHO Firms in the US: 2003 - 2007

Table 2. Forecast of US Bundling Revenues from Small/SOHO Businesses: 2002 - 2007 (US$ in Billions)


List of Figures


Figure 1. Organizations Currently Purchasing a Bundle or Planning to Bundle

Figure 2. Forecast of US Small/SOHO Business Bundling Revenues: 2002 - 2007

Figure 3. Number of Organizations, by Size, in the End-User Survey

Figure 4. Number of Organizations, by Industry, in the End-User Survey

Figure 5. Organizations Currently Purchasing a Bundle or Planning to Bundle

Figure 6. Top Five Services Preferred in a Bundle (Percentage of Organizations Selecting the Service for a Bundle)

Figure 7. Primary Benefit Desired from Bundling

Figure 8. Expected Discount for Purchasing a Bundle of Telecom Services (for those organizations not willing to pay a premium for a bundle)

Figure 9. Organizations in the BellSouth Region Currently Purchasing a Bundle or Planning to Bundle

Figure 10. Organizations in the Qwest Region Currently Purchasing a Bundle or Planning to Bundle

Figure 11. Organizations in the SBC Region Currently Purchasing a Bundle or Planning to Bundle

Figure 12. Organizations in the Verizon Region Currently Purchasing a Bundle or Planning to Bundle

Figure 13. Services Preferred in a Bundle for the BellSouth Region

Figure 14. Services Preferred in a Bundle for the Qwest Region

Figure 15. Services Preferred in a Bundle for the SBC Region

Figure 16. Services Preferred in a Bundle for the Verizon Region

Abstract

Bundling telecom services for business customers has become a key marketing strategy of service providers to gain market share and grow revenues. This report presents results from a survey of 1,421 US business and government organizations on their purchases of bundles and interests related to bundling. Survey results are presented for the national sample, as well as for the RBOC regions. The report profiles the business bundling programs of two RBOCs (SBC and Verizon), the three major IXCs (AT&T, MCI, and Sprint), and two CLECs (Cox Communications and Covad). A five-year forecast of US small/SOHO business bundling revenues is also included.

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