CONSUMERS INDIFFERENT
ABOUT TELECOM SERVICE PROVIDERS

When Choosing Bundled Service Providers
Consumers Have No Preferences

JENKINTOWN, PA, October 27, 2005 – Even though the telecommunications industry has refocused its efforts to emphasize the “triple-play” (the combination of wired line, video and Internet services from one provider), consumers indicate that they are indifferent to who provides these combined services. TNS Telecoms recent survey of consumers across the US indicated that 67 percent of households did not indicate a preference for the service provider who would offer them a bundled offering.

Despite the lack of consumer preference, some differences can be noted when comparing RBOC service areas. In the BellSouth region 19 percent of households indicated a preference for their local provider for these combined services compared to 16 percent of households nationwide, while in the Qwest region only 11 percent of households preferred their local provider.

“Providers will need to compete for consumers based on service offerings and pricing and focus less on brand,” remarks Charles White, Vice President at TNS Telecoms. “Providers can look at these results as a double-edged sword depending on their position in the market. Existing customers are very willing to consider their provider for new services, but likewise they will consider their other providers as well,” says White.

In other results from this quarter, three percent (3%) of households nationwide moved from cable TV to satellite TV over the quarter. In addition, spending on wired line telecom services decreased four percent (4%) from the previous quarter while spending on wireless and video services increased slightly.

Telecom Industry Market Share – Second Quarter 2005

About the Research

TNS Telecoms collects responses through its Bill Harvesting® database from 32,000 U.S. households that provide their complete set of telecommunications bills, promotional bill inserts and telecom direct mail communications each year. In the business market, TNS Telecoms' BusinessWave® research gathers telecom behavior information from small, medium and large businesses across the U.S. Together this syndicated information provides a number of product offerings including databases, TNS reports and online applications allowing national, state, city and micro level analysis across the U.S.

About TNS Telecoms

TNS Telecoms, the specialist telecoms division of TNS, is a global provider of strategic and tactical market information and analysis for telecom service providers and the entire telecommunications industry. Its range of syndicated research solutions and custom capabilities allows TNS Telecoms to meet the changing market information challenges of telecom-related businesses. For more information please go to www.tnstelecoms.com.

About TNS

TNS is a market information group. We are the world’s largest custom research company and a leading provider of social and political polling. We are also a major supplier of consumer panel, TV audience measurement and media intelligence services.

TNS operates a global network spanning 70 countries and employs over 13,000 people. We provide market information and measurement, together with insights and analysis, to local and multinational organisations.

We combine our specialist sector knowledge with expertise in the areas of new product development, motivational research, brand and advertising research and stakeholder management to bring our clients up-to-the minute, internationally consistent information.

We think differently to help our clients build competitive advantage, making TNS the sixth sense of business.

Further information on TNS can be found on www.tns-global.com

TNS is a trademark of Taylor Nelson Sofres plc.

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Editor’s Note: Please source all data and tables as “Source: TNS Telecoms.”
Third Quarter 2005 Tracking Metrics will be available in December 2005.
Bill Harvesting and BusinessWave are registered trademarks of TNS Telecoms

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