Buyers Don't Want Bundled Services

Fortnightly Magazine - November 15 1997
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While some utilities would like to sell customers electricity bundled with local and long-distance telephone and cable television, consumers may not be interested, according to a recent survey.

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The RKS National Residential Customer Assessment found that residential customers view bundled service offerings with suspicion.

"These latest findings call into question the concept of cross-functional mergers (em the idea of combining a variety of energy and communications services under a single brand for the residential market," said David J. Reichman, RKS research president. Reichman added that residential customers want more, not fewer, choices.

The most affluent and well-educated customers are the least interested in purchasing bundled services from a single provider.

If a customer did want bundled services, then one-third would purchase it from their electric utility. Nineteen percent would choose their local telephone company; 12 percent would choose their long-distance provider. Only 4 percent would seek such services from their cable company.

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