Bundled services are becoming available to a larger number of customers, with AT&T, BellSouth and Verizon all having recently unveiled multiproduct packages targeting residential users.
Studies done by The Yankee Group and various other sources indicate there is a strong interest among consumers in receiving multiple communications services from a single provider.
AT&T Corp. today announced it has entered the local residential market in California, introducing a lead offer of $19.95 for customers that defect from Pacific Bell.
California is the seventh state where AT&T has entered the local residential market. The company also provides local residential phone service in California, Georgia, Illinois Michigan, New York, Ohio and Texas and has plans to provide New Jersey residents local telephone service later this summer. AT&T resells local phone service through the unbundled network element – platform, and decided to compete in California after the public utility commission lowered the wholesale rates Pacific Bell could charge competitors to lease its local network.
AT&T is offering California residents a local offer that includes unlimited local calling from home, caller ID and two additional calling features such as call waiting and three-way calling. AT&T contends that former Pac Bell customers can save 20 percent on their local phone bill by moving to its plan. AT&T also is offering a number of local and long distance plans. One plan includes a $3.95 recurring monthly charge and 7 cents per minute for all direct-dialed local toll and domestic long distance calls; or 10 cents a minute with no monthly charge. The company also is offering local customers AT&T Unlimited. For a flat fee of $19.95, Californians can talk to other AT&T residential long distance subscribers around the country for an unlimited period of time.
With the Baby Bells gaining federal approval to provide long distance service within their local regions, AT&T’s consumer long distance revenue has eroded. The Bells have demonstrated that a bundled local and long distance residential offer is a compelling package.
In line with that thinking, Verizon Communications today rolled out a single-bill package called "Veriations All" including local phone services, long-distance, regional toll, DSL and wireless. It’s available in today Massachusetts and New York and beginning next month will also be offered in New Jersey and Pennsylvania. The rollout will continue into 2003.
Veriations All includes unlimited Verizon DSL Internet access; Verizon Wireless service with unlimited night and weekend calling, 300 minutes of nationwide calling, anytime, and 1,000 mobile-to-mobile minutes; Verizon Long Distance with unlimited direct-dialed domestic calling nights and weekends and 300 minutes of direct dialed nationwide domestic calling, anytime; and unlimited Verizon local and regional toll calling with premium services like Home Voice Mail, Caller ID, Call Waiting, and Three-Way Calling.
According to Verizon, subscribers to the package can save as much as a third off the regular price of the individual services.
As for BellSouth, the company in late July launched BellSouth Answers, which combines on one bill BellSouth Complete Choice local calling plan with BellSouth Long Distance, data and wireless services. The new product structure offers consumers combined savings of up to 10 percent or more, depending on services selected, such as Internet, wireless - and now long distance in Georgia and Louisiana - when purchased with BellSouth's Complete Choice plan, according to the company.
The BellSouth Answers packages feature long distance as a key component for customers in Georgia and Louisiana, with additional wireless minutes, provided by Cingular Wireless, being a key feature for customers in states where BellSouth Long Distance is not yet available. BellSouth launched its long distance calling service to customers in Georgia and Louisiana in May, and is seeking to provide the service to more states throughout its region. BellSouth Answers packages vary in cost depending on the services selected by the consumer; however packages start as low as $60 per month in some states.
"With more than two-thirds of our customers saying that they want the convenience of having all of their telecom services from one provider, we know it is important for us to provide one-stop-shopping capability, and to deliver it in a way that provides tremendous cost and time savings benefits to our customers," said Pam Jones, BellSouth’s vice president of marketing.
