Tuesday, May 6, 2008
Dallas-based Parks Associates say online storage and backup add value to broadband
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DALLAS — Online storage and backup services will spur revenue generation and customer retention over the next five years for U.S. service providers, bringing in more than 1.5 million subscribers, according to Dallas-based market research and consulting firm, Parks Associates' Enabling Solutions for a Rich Broadband Experience.
These customers will pay a monthly storage and backup fee, in addition to their standard service subscriptions, generating an additional $188 million in service revenue by 2012.
"Online storage and backup services are great customer retention tools and upgrade incentives," said Yuanzhe (Michael) Cai, Director, Broadband and Gaming, Parks Associates. "They fit with broadband service providers' strategic advantages, complementing existing trust and billing relationships, network ownership, and guaranteed quality of service."
The report recommends that as broadband service providers reposition themselves as experience providers, they should introduce a variety of value-added services to strengthen customer relationships, increase ARPU, and showcase the benefits of high speed. Such value-added services include broadband entertainment, management and support, and control and monitoring services.
"Service providers need to offer a portfolio of new offerings to create meaningful revenue growth," said James Kuai, Research Analyst, Parks Associates. "BSPs need to experiment with different services and white-label solution providers."
Source: Parks Associates
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