Thursday, April 17, 2008

80:20 Rule Holds in Rural Markets

Wireless "unlimited" plans exist for one reason: to retain the loyalty of the heaviest users--synonymous in many ways with "best customers." But that same sort of thinking increasingly should be seen in the broadband services and wireline customer business as well.

John Rose, president of the rural telephone trade group OPASTCO, says not only that fiber to the home is coming for rural telcos, but that symmetrical bandwidth is coming as well. But that doesn't mean every customer will buy every service. That's a big change for rural telcos, who are used to nearly universal take rates.

Some providers already are finding that even when triple play services are available, a third of customers only buy voice, a third take video and voice while a third take all three services, he notes.

So even on the wireline side of the house, high-end customers are emerging. So it will be really important for rural telcos to take care of those best customers, Rose says.

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