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Link: TelcoTV: Consumers Say Price Matters – Lightreading

Surveys indicate that price is the only significant variable customer care about when selecting a cable provider. As we have long feared, TelcoTV is a zero sum revenue game, and as long as this holds true, it is hard to see how it will drive significant capex expansion.

Discussion

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  1. Isn’t the big, honkin’ strategic question whether or not the carriers will control video or if it goes pure IP, they’re just pipes for someone else? Wouldn’t a good strategy be to drive to the lowest price IP provider position in order to wholesale access? It seems like everyone is trying to climb up the value chain with poor results…why not just swim against the tide and undercut the market?

    Posted by Thomas | November 12, 2008, 5:24 PM
  2. This is a question that has gone significant analysis and the conclusion is quite clear. Such a strategy would ensure survival for the telcos and provide healthy profit margins. Except for one detail- the magnitude of the revenue and profits would be less than it is today.

    Telcos could adopt this strategy but it would be tantamount to a permanent retreat, and they remain convinced there might be another way.

    Things should shake out in the next 5-10 years.

    Posted by Andrew Schmitt | November 13, 2008, 11:43 AM