Cablecos Extend Triple-Play Bundles to Biz

Faced with intensifying competition from telcos in selling broadband bundles, cablecos are have moved to phase two of their plan to marketing to businesses. This phase has them pushing focused triple-play packs to these potential customers, as opposed to selling a menu of separate and disparate services to this group.

In the last few weeks alone, cable colossus Comcast Corp. rolled out Comcast Business Class, its triple-play bundle for SMBs throughout the business-dense Northeast, accompanied by an aggressive TV ad campaign. RCN Corp. this week reworked its troika to ensure businesses only get – and pay for – the video services they really need.

While many large and small cable operators have been selling an array of network services to SMBs for some time, they’re now pitching what essentially are more focused, packaged and alluringly priced threesomes of VoIP, TV and Internet services. This opens a new front in their battle with incumbent telcos for business customers.

Cable companies have long discussed their plans to attack the SMB market, which they firmly believe is a big opportunity. They contend that in the high-stakes, big-ticket race to widely deploy landline video services to residences, tier 1 telcos such as AT&T Inc. and Verizon Communications Inc. have forgotten about their SMB accounts and aren’t aggressively pursing new opportunities in this segment.

Comcast’s Business Class suite of services includes cable television, high-speed Internet and voice products and comes with dedicated support and individual attention for every customer 24/7, which it claims differentiates the company from other providers. Customers also can go outside a standard bundle and access a variety of packages and offerings that can be tailored to meet their needs.

RCN Business Services on April 9 launched four new right-sized programming packages for SMBs. What the company has essentially done is keep the VoIP and Internet elements of the triple play offering intact, while offering four options for programming as part of the third service – digital TV.

While far smaller than the likes of Comcast and other giant MSOs, RCN has the same strategy in mind. The main metro and suburban areas where it operates include Washington, D.C., Philadelphia and Lehigh Valley, New York City, Boston and Chicago.

“Business customers have told us that a full digital cable TV lineup is often far more programming than they need,” said Brad Martin, senior director of marketing and operations. “When a business is forced to choose between a full lineup and nothing at all, many opt to pass on cable TV service altogether. We responded with a set of packages that deliver a broad set of options configured to meet their requirements and budget.” {vpipagebreak}

RCN said the programming packs are geared to appeal to gym, spa and fitness center patrons; small hotel or motel guests; nursing home, hospice center and hospital facilities; and small office waiting rooms. However, they are available to any business.

With the four options now available, customers can select packages with a varied array of 15 to 28 channels at price points that all fall below $30 per outlet and are available when combined with phone or high-speed Internet service.

While that variance may not seem substantial, remember that many SMBs are struggling to survive in a failing economy, often have little or no dedicated internal IT workers and are trying to contain costs in a time when prices for seemingly everything are increasing.

Combine this business environment with the ability to lock in prices on three services for two years by signing up for triple play offerings from operators such as Comcast, along with a single bill for everything, and predictability becomes priceless to SMBs.

“We feel that SMEs should be attracted to bundles because most SMEs like simplicity, and bundling can allow them to have a single point of contact, single bill and one contract,” said an Ovum Inc. report released April 10. “Many customers do not have the time (or in-house expertise) to research all the offers available to them – bundled services are an easy solution to all their integrated communications technology needs; while at the same time, SMEs can avoid the risk of being left behind by technology change – the service provider takes the strain of new technology introduction.”

The Ovum report also noted that small businesses need to avoid capital expenditures, adding further that bundled services “should provide overall cost savings for SMEs – if they buy multiple services for one service provider.”

Comcast, RCN and Cablevision Systems Corp. also target large business, but with a different menu of services – high-speed private lines, hosted services in part to serve multi-location firms, higher speed Internet access, wireless and – in Cablevision’s case, voice-over-metro Ethernet.

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