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September 30, 2008 1:16 PM PDT

Consumers prefer phone company bundles

by Marguerite Reardon
  • 8 comments

Results from a new customer survey suggest consumers would rather subscribe to a triple play bundle of services from a phone company than from a cable operator.

On Tuesday the market research firm CFI Group released results from a customer satisfaction study that indicated that almost twice as many consumers are interested in buying a bundle of phone, broadband and TV service from a phone company than from a cable operator. But because phone companies haven't completed rolling out TV and upgraded broadband services to all their customers, more consumers buy the bundle from the cable company. Only about 2 percent of those surveyed subscribe to TV service from a phone company.

Using the American Customer Satisfaction Index created by the University of Michigan, CFI surveyed more than 1,200 consumer households to examine customer satisfaction with video, broadband Internet access and wireless communications services. The group concluded that consumers are more dissatisfied with cable operators than they are with phone companies, which could give phone companies a big advantage in vying for customers.

According to the study, consumers said that high cable rates and poor customer service were the two biggest reasons they would consider leaving a cable provider. And customers also cited faster Internet speeds as a top reason to switch from cable to a phone company's service.

"The cable companies are asleep at the wheel if they don't see the threat from the telecoms," said Phil Doriot, program director for CFI Group. "But the network upgrades aren't going to happen overnight, so cable companies still have the opportunity to improve their customer service and cover their Achilles heel."

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