Research Proves That People Want Our Product

I could let myself speak cynically about this study sponsored by Verizon:

Tampa, Hillsborough County Residents Want Choice and Competition for Cable TV From Verizon

It's probably a good idea to recognize that survey research is easily colored by factors such as who pays for it and what questions are asked in the survey. A reasonable person will be careful about saying that any position is "proven" by the results of a survey. Naturally, this Florida study paid for by Verizon concludes that consumers in two important Florida markets want to see competition for their business. That would probably be true in most markets.

To me, the significance of this study lies more in what it says about the current strategy of Verizon (and its cousins SBC, BellSouth and other telcos) to break into the video space. Some of the telcos advancing triple-play strategies are hoping to get government help to leap-frog local franchise requirements and get easier access to markets. Being able to point to "research" can help persuade legislators to move ahead and ease up requirements.

That said, it is probably true that most of us as consumers in the overall U.S market would like to see more competition and choice among communications providers, not just for TV, but for voice services, Internet access and wireless. In the following survey results, quoted from Verizon's press release today, perhaps the surprising thing is that the percentages in favor of competion are not even higher:

* When asked if they had cable or satellite television service, 79
percent of Tampa respondents and 87 percent of Hillsborough County
respondents said yes.

* When asked whether or not they support companies being able to offer
television service through a fiber-optic network as competition to
cable and satellite, 78 percent in Tampa and 83 percent in Hillsborough
County were in favor.

* When asked about Verizon being one of these companies, 68 percent were
positive in Tampa and 62 percent in Hillsborough County, an average of
65 percent.

* Most area residents are not satisfied with the level of competition in
the cable television service market. Fully 57 percent of Tampa
residents and 51 percent of Hillsborough County residents say they are
not satisfied with the amount of competition between companies that
provide cable television service in their area. Dissatisfaction is
even greater among those who currently have cable television service.
Six out of 10 cable subscribers in Tampa (60 percent) say they are not
satisfied with the amount of cable service competition, as do 52
percent of Hillsborough cable subscribers.

* Whether young or old, male or female, white, African-American or
Latino, there is broad support for increasing the number of companies
offering this type of television service, with the percentage favoring
more choice ranging from 64 percent to 85 percent.

AB -- 6/24/05