Verizon introduced a new broadband price-for-life promotion for specific DSL tiers. The promotion runs through February 21st and new customers have to commit to at least a two year term. The promotion guarantees no price hikes for as long as the customer keeps the service. Pricing for the promotion starts at $17.99/month for up to 1 megabits per second (Mbps); up to 3 Mbps at $27.99 per month; and up to 7.1 Mbps at $37.99 per month. Verizon also announced it’s DSL powered 7.1 Mbps service is now available to 9 million homes across their footprint.

Verizon also announced a new promotion for its DirecTV powered triple play bundles, with new introductory pricing of $74.99 (when ordered online) for unlimited voice, 1 Mbps broadband, and DirecTV video service. As Verizon’s press release title suggests, the new promotions are clearly targeting “Budget-Minded Consumers.”

Consumer Reports reports in their February issue that telco triple play bundles represented by Verizon FiOS and AT&T U-Verse are the most consistently “satisfying providers for their Internet, television, and telephone services.” Interestingly enough, Consumer Reports (CR) labels both FiOS and U-Verse as fiber optic based services, which seems to contribute to their favorable rating. CR will surely be receiving clarification memos from Comcast, Cox, and other MSOs who will point out that U-Verse is no more fiber based than they are. I’m sure those same cable companies are ‘thrilled’ to see that CR recommends highly rated cable companies like Cox, Cablevision, and Brighthouse as ‘fine alternatives’ where ‘telco-delivered service is not available.’ Second fiddle will have to do. Cable can’t catch a break from CR. They also recommend opting for telco/DBS bundles when ‘television service is a priority’ and fiber optic services are not available. Ouch!

Comcast took the wraps off some new triple play bundles with HD as the focus. The new bundles range in cost from $114.99 to $179.99, and feature a mix of HD and SD channels, broadband, and digital voice. The packages are labeled HD Starter ($114.99), HD Plus ($139.99), and HD Premier ($179.99). All include HD STBs, with the Premier package including a HD DVR. Depending on whether the market is wideband capable, the broadband component ranges from 6 Mbps to 16 mbps, or 12 Mbps to 22 Mbps for wideband. The strategy hopes to reach value conscious subscribers who still crave HD and fast broadband. For customers who don’t need HD, Comcast also launched new economy packages, with the cheapest triple play package consisting of 50 SD channels, 1 Mbps broadband, and voice service for $79.85.

TORONTO – Mediacom Communications has selected a Nortel [NYSE/TSX: NT ] 40G Optical Solution to expand its network and meet increasing bandwidth demands. The new network will run across Chicago, Illinois, Des Moines, Iowa, and Omaha, Nebraska delivering telephone, high-speed Internet and TV services – including high-bandwidth applications like HDTV and Video on Demand (VoD). Read More ...

Comcast and Sears announced a new relationship where Comcast products and services will be marketed and sold in 400 Sears stores. Customers will be able to buy services and schedule installations within the store. About 100 or so stores will also host interactive kiosks that feature HD and other advanced services. Rebates will also be offered for new customers - $100 for a single product and $250 for triple play purchases. Broadcasting and Cable has all the details in this post.

The move follows similar moves by Comcast and other cable companies into retail relationships including WalMart and traditional electronics retailers like Best Buy. Cable has been a little more aggressive with retail relationships, since they lack the retail footprint of their telco competitors. Telco competitors are looking to catch up though. AT&T recently announced a WalMart distribution relationship for U-verse.

Verizon is putting some attention on non-FiOS triple play bundles by announcing price reductions for their DirecTV/DSL powered triple play bundles. Continuing decreases in DSL and wireline telephony subscriber counts are certainly helping fuel this latest promotion. These latest bundles offer unlimited local and long-distance calling, broadband via DSL at 1, 3 or 7.1 mbps tiers, and DirecTV satellite service. Prices start at $79.99/month, down from $95/month and go as high as $120/month depending on Internet speeds and video channel selection. For example, $99/month buys you “a triple-play package of Verizon High Speed Internet service at up to 3 Mbps, unlimited local and nationwide long-distance voice service with several calling features and DIRECTV's PLUS HD DVR package with more than 200 digital TV channels and DVR service, plus a free DVR upgrade and SHOWTIME premium movie channels for 12 months,” according to a Verizon company statement. Verizon is also promoting double plays of phone and either DSL or DirecTV starting at $49.99/month.

ROSEVILLE, Calif., Oct 14, 2008 /PRNewswire-FirstCall via COMTEX/ -- Leading independent communications holding company SureWest Communications (Nasdaq: SURW) announced today that during the third quarter of 2008 it reached the 100,000 broadband customer milestone. In celebration of this significant occasion in the company's history, SureWest is awarding a free year of triple-play service to two customers: one in its Sacramento market and one in its Kansas City region. Read More ...

A new customer satisfaction study conducted by CFI, a Michigan based customer satisfaction market research firm, reveals that consumers prefer to receive bundled offerings from telecom carriers over cable companies by almost 2 to 1. The second annual Telecom-Cable Industry Satisfaction Study surveyed 1,200 households for satisfaction with video, broadband Internet access, and wireless communications using the University of Michigan’s American Customer Satisfaction Index methodology. The study’s authors suggest that “customer satisfaction provides telecom companies with a competitive advantage.” Interesting survey findings include:

• Nearly 60% of surveyed households now have bundled services (telecommunication, internet, and video), a 13% increase since 2007
• Until fiber becomes more accessible, cable will have the edge in speed, but customers are increasingly sensitive to rising rates and poor customer service coming from cable providers
• Poor customer service accounts for 40% of churn from Cable TV service
• Of customers who will switch carriers, 40% say that the competition offers better rates and plans
• Nearly 50% of households are interested in VoIP and IPTV, but awareness for either has changed little over the past year
• When telecom customers switch to cable, the primary reason is
  faster internet access
• Twenty-nine percent of customers have no intention of bundling at all, preferring instead to pick and choose the services that best meet their needs
• Providers tend to offer special programs and rates to new customers, while effectively ignoring loyal customers, resulting in extreme dissatisfaction

The last bullet point really struck a chord with me. I often wonder about the strategy of offering the best deals to new customers, often at the expense of existing loyal customers – at least from the existing customer’s perception. I recognize the goal with such a strategy is growth, but I wonder if that growth strategy ultimately alienates existing subscribers, causing them to churn away, and thus defeats the purpose.

These study results also seem to somewhat contradict recent J. D. Power customer satisfaction findings, which said that cable companies are beating telcos with telephone service satisfaction. It’s not an apples to apples comparison, but it does reveal elements of the bundle appear to be up for grabs. When put in the context of the whole bundle, cable seems to be losing (at least if you believe these CFI results). But when each service is looked at individually, different results may occur.

AT&T and DirecTV announced an agreement where AT&T will resell DirecTV services as a part of their “AT&T Advanced TV” video portfolio. The agreement will begin after January 31, 2009, when AT&T’s current agreement with DISH Networks expires. It’s a big, although expected, blow to DISH Networks, who had great success with leveraging their AT&T partnership for subscriber growth. Observers from afar could conclude that AT&T stopped aggressively marketing their DISH bundle in favor of U-verse long ago, which certainly contributed to DISH’s slowing subscriber growth, culminating with an actual decline in subscriber counts in 2Q08.

"Our focus is on providing customers with a better TV experience than cable," said Jeff Weber, AT&T vice president-Video and Entertainment in a company statement. "AT&T | DIRECTV complements our premier AT&T U-verse TV service and gives customers another great choice for state-of-the-art, 100 percent digital programming." DirecTV now has a virtual coup with “bell company” telco partnerships, including agreements with Verizon, Qwest, and AT&T. DISH has current resale agreements with large independents, including EMBARQ, Windstream, and CenturyTel. Now the real question – how long before AT&T buys DirecTV?

DirecTV to Liberty Media. "I was frightened of the triple play in cable and then a superior service coming from the telephone companies,” Murdoch told a Goldman Sachs investor conference on Wednesday. He also suggested that although he may have some regrets over that thinking, since DirecTV seems to be holding up quite well against those triple play competitors, he still believes his assessment will be right over the long term.

The current assessment is right – DirecTV is indeed holding its own against the triple play competitive threat. They have executed a well defined strategy of focusing on content and feature enhancements, including HD, sports, and interactive apps, that position DirecTV as a premium video offering. Premium enough for millions of subscribers to forgo the perceived value of triple play bundles, and make DirecTV their video option of choice. It’s a great lesson in focusing on your core strength and leveraging it to your advantage. As Murdoch suggests, there is no guarantee this current success will translate into long term prosperity for DirecTV. There is no shortage of challenges for them to sustain this success. Beyond the triple play challenge, forthcoming convergence applications provided by IPTV, tru2way, and wireless integration will be tough for DirecTV to compete with.