Service Provider Featured Article
January 18, 2008
Providers Offering Service Bundles to Keep Customers
By Rich Tehrani, President and Editor-in-Chief
Integra5 is a leader in blending triple and quad play bundles into converged services. Their i5 Converged Services Platform (i5 CSP) blends voice, video, data and mobile services into new communications and content applications for delivery across TVs, PCs and other devices.
Steve Borelli (News - Alert), vice president of marketing and business development at Integra5 will be speaking at the upcoming ITEXPO in Miami Beach. I had the chance to catch up with Borelli and I asked him a few questions regarding the trends happening in our space and the future of IP
communications.
RT: What trends are you noticing in the communications market?
SB: With increasing competition between cable companies and telcos for market share, we’re seeing service providers seek innovative ways to attract and retain customers. Triple and quad play bundles are nearing ubiquity, and providers are moving beyond simply discounting the basic bundle by adding high value services. As a result, we’re seeing increased adoption of converged services — those that blend voice, video, data and wireless — as well as flexible and scalable platforms to support those services. Applications like TV Caller ID and PC Caller ID, which are field-proven to boost ARPU and increase subscriber loyalty, are being employed as competitive differentiators today. Consumer familiarity with these will drive adoption of additional converged services like Voicemail on TV and Text Messaging to the TV moving forward.
RT: Did 2007 finish the way your company expected?
SB: Integra5 had very solid results in 2007 — increasing our channel presence in Latin America, receiving several new patents in the U.S. and abroad, and announcing new customers who will be leveraging the i5 Converged Services Platform to deploy multiple i5 applications, including TV and PC Caller ID and Voicemail on TV.
In addition, in 2007, we saw larger operators deploying converged services — including top 20 MSOs WOW! and Knology (News - Alert), who are both Integra5 customers — to provide competitive differentiation. We expect this trend to continue in ‘08 and plan to announce our already-signed contracts with Tier 1 providers throughout the year.
In 2007, we also directed an unprecedented industry survey with one of our customers: South Carolina-based service provider Comporium. The survey revealed key findings around the value of converged services, including: Comporium’s TV Caller ID subscribers were 30% more likely than non-subscribers to rate the provider as “great.” In addition, 25% said TV Caller ID is a main reason they continue subscribing to Comporium bundled services.
RT: Is 2008 going to be a better year than 2007?
SB: We’re extremely well positioned for ‘08, where we will continue to build upon our success from last year. We plan to further our expansion into Latin America, as well as our channel momentum there and in the U.S. In addition, with market appetite whetted for converged applications, we’ll see providers moving beyond TV Caller ID and adopting more advanced converged apps. Historically, small to mid-sized service providers have looked to converged applications to provide competitive differentiation; now, with strong results showing their success, we’ll see larger operators sign on board. With Comcast announcing at CES plans to deploy Universal Caller ID to the TV and PC, additional Tier 1 providers will look to roll out converged applications and will seek a flexible, scalable platform to support their deployments. Integra5 expects to announce our already signed contracts with Tier 1 providers in the U.S. and internationally throughout 2008.
RT: What technologies have altered the market the most?
SB: Due to the emergence and refinements in triple and quad play technologies, we’re really starting to see an enhanced and personalized triple-play experience. Technologies including Web-based portals — popular and personalized destinations for operators’ end-users — and interactive TV — including Interactive Program Guides (IPGs), Video On Demand (VoD), click to call and channel telescoping — will continue to revolutionize the viewing landscape and unify elements of the n-play experience.
In addition, with consumers increasingly requesting more control over their communications experience, platforms that support personalization and experience-oriented services have altered the market and will continue to have a large impact. For example, the ability to see incoming call details on your television — and then divert that call to voicemail or simply ignore it — has proven popular. Having seen these market-altering services, subscribers are requesting even more advanced converged applications.
SB: With intensifying competition in the triple and quad play market, it’s becoming increasingly apparent that the battle is not just between the cable companies and the telcos. The fight for market share also includes major online and consumer brands such as Google, Microsoft and Apple (News - Alert), all of whom are vying to control the communications experience across devices. In fact, these three have all launched TV initiatives, with Microsoft and BT most recently announcing their partnership at CES to make the Xbox 360 a platform to deliver TV and entertainment services, in addition to the usual games.
The cable companies and telcos may have an edge now in controlling the consumer experience across devices, since they do already have relationships with many of the devices in question. However, look for more innovation and partnerships from among these major brands, who will fiercely battle for center stage. In addition, these players will be looking toward value-added, experience-oriented services like TV and PC Caller ID that connect in-home devices, so as to further differentiate their offerings and garner consumer loyalty.
RT: What are the brightest spots in your business going forward?
SB: We are very excited to further our channel momentum in the U.S. and Latin America, announce new customer deals and continue our overall momentum. In addition, we look forward to leveraging our partnerships with leading solutions providers to reach new markets and additional customers.
In the year to come — and due to high-stakes industry competition — IOCs will continue to be aggressive, deploying multiple converged applications based on initial success with TV Caller ID. Integra5 is in the ideal position to help service providers deliver applications that are field-proven to boost ARPU and increase subscriber loyalty. In addition, we look forward to announcing some of our already signed contracts with Tier 1 providers.
RT: What will conferees learn from your ITEXPO conference session this month?
SB: Attendees will learn how converged services — those that blend voice, video, data and wireless — provide opportunities for new revenues, innovation, customer retention and more for service providers. In addition, I’ll share real-world success stories, with in-market customer data backing it up. For example, a recent survey we conducted with one of our customers — South Carolina-based service provider Comporium — showed that its TV Caller ID subscribers were 30% more likely than non-subscribers to rate the provider as “great.” In addition, 25% said TV Caller ID is a main reason they continue subscribing to Comporium’s bundled services. I’ll also discuss the types of converged applications that are being deployed today, as well as those we’ll see in the future.
RT: Who should attend?
SB: Service providers, equipment vendors, industry analysts, anyone else with an interest in the space!
RT: What unique perspectives will you offer?
SB: With converged services deployments since 2004, Integra5 is in the unique position of being able to offer real-world data from both service providers and subscribers. This data — straight from the mouths of consumers who have utilized the services — is unprecedented in the marketplace and provides an invaluable tool for operators looking to deploy value-added services.
RT: What is the most exciting market change we can expect in communications in technology in 2008 and beyond?
SB: 2008 will be the year that converged services make significant inroads, with service providers adopting them as part of their central strategy. With Comcast announcing plans to deploy Universal Caller ID to the TV and PC, we expect to see even more Tier 1 rollouts. In addition, service providers who have already deployed TV Caller ID as an entry strategy will adopt PC Caller ID and other advanced services.
Rich Tehrani is President and Group Editor in Chief at TMC (News - Alert). In addition he is the Chairman of the world’s best attended IP Communications event, Internet Telephony Conference & EXPO.
Mark your calendars! Internet Telephony Conference & EXPO — the first major IP communications event of the year — is just days away. It’s not too late to register for the event, which takes place in Miami Beach, FL, January 23–25, 2008. The EXPO will feature three valuable days of exhibits, conferences and networking that you won’t want to miss. So what are you waiting for? Sign up now!

INDUSTRIES
