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What Fights Cord-Cutting?

Phil Harvey
11/10/2009

5:00 PM -- Just getting settled here at TelcoTV 2009 in Orlando. But already the show's biggest buzzword is losing its meaning:



— Phil Harvey, Editor-in-Chief, Light Reading

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LeonardGrace
LeonardGrace
12/5/2012 | 3:52:50 PM
re: What Fights Cord-Cutting?
It takes a tsunami for consumers to change service providers, since it is a hassle, and it involves going into the unkwown. Unless the current provider just repeatedly drops the ball, customers will pay to be comfortable with the status-quo.
DCITDave
DCITDave
12/5/2012 | 3:52:48 PM
re: What Fights Cord-Cutting?
<div align="center">Video Comment

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LeonardGrace
LeonardGrace
12/5/2012 | 3:52:45 PM
re: What Fights Cord-Cutting?
Phil,

First let me say that the video post and the video reply is both unique and impressive from a personal standpoint.So, good job in making this a really unique experience.

To the point, there are reasons for Cord-Cutting resistance within the marketplace, especially when it comes to the Teleco/MSO's. You are right that the "sweet deals" currently being offered are for new customers and not switchers. So, to find those new customers companies will have to win them from competitors, since the infrasturture has been built out to a large extent covering most of the markets. Unless there is a direct overbuild, such as FIOS, or ATT-U-Verse, the competition for jumping ship is slim. I say this in respect to the bundled package. DBS is taking the lower echelon of consumers, those who are willing to switch from company to company to get the best deal, and maybe leaving a debt behind, to boot.

Where there is direct competition in certain metropolitan areas and suburbs,probably FIOS has the best chance of securing the switch from a rival due to their powerhouse of bandwidth and services. However, there is not much difference between most other competitors to cause a change in providers. Customers will complain, but if the company will listen and offer a somewhat prudent response, the customer will put up with a lot, before deciding to make that big step. In essence, having your Digital Video,ISP Serivce, and IP Telephony with one company and one bill is attractive and hard to penetrate. Nobody wants to change this type service without having experience some serious down time, repeated monthly billing disasters,and no one wants to change an ISP account.

Also, keep in mind that competition is limited to certain areas that competitors like Verizon and AT&T have chosen and represents a small part of the universe to date.

Just thoughts from my experience.
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