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Verizon Joins Tech Support Parade
10 Oct, 2008Verizon is joining the parade of telecom service providers who now offer expanded tech support services targeting the consumer market. Branded as “Expert Care,” the service will “offer 24 x 7 in-depth technical support for computer software and hardware problems, as well as repair or replacement coverage for computers, TVs and telephone equipment.” The service offers:
- Device Protection - Provides repair or replacement of multiple computers, TVs and telephones. The plans range from $4.99 to $19.99 a month, depending on the equipment covered, and may also include repair or replacement of original equipment remote controls, keyboards, mice, monitors and backup batteries for Verizon's FiOS service.
- Premium Technical Support - Offers a 10-month subscription plan, priced at $14.99 a month, which includes telephone and online support for issues such as virus and spyware detection and removal, virtual private network problems, help with firewalls, problems with computer operating systems, gaming connectivity problems, and software and hardware help. Telephone and online technical support is available 24/7.
- Premium Onsite Support - Provided in partnership with Circuit City's firedog, this plan includes onsite support ranging from operating system installations to full PC and home network setups, billed on a per-use basis. There are several offerings, tailored to specific needs and priced from $99.99 to $249.99.
You have to wonder whether the launch of these types of services during these hard economic times is the best of timing. This type of discretionary spending is usually the first to get cut back when the economic belt gets tightened. I don't see too many people these days paying Verizon $250 to come in to their home and set up anything. Adding insult to injury, the odds are somewhat stacked against Circuit City surviving a prolonged economic downturn.
AT&T Enters Home Tech Support Market
21 Aug, 2008AT&T announced the launch of ConnecTech, a bold move into the home tech support market, and a direct shot across the bow of competing services from Best Buy, Circuit City, and others. ConnecTech will offer “television and home theater installation and personal computer and home network setup, plus an extensive list of repair services.” Home tech support services are growing among the telecom service provider community. Both large and small carriers are seeing the natural evolution of supporting customers in the home with the entertainment and broadband solutions they are increasingly marketing. Rather than just selling a service, these types of support services allow service providers to strengthen customer relationships by helping simplify the growing complexity of installing and managing entertainment and broadband products and services. Of course they also hope to gain some competitive advantage, and make a little money at it too.
It remains to be seen if this is a good business move from a dollars and sense point of view. But I do believe this is a smart move from a competitive positioning point of view. Despite all the cool applications that broadband and entertainment convergence products can do, they can create potential areas of frustration with customers. The average customer has no interest in configuring their wireless router, but they do have an interest in enjoying the experience and convenience a properly configured wireless router can deliver. Service providers that enable that experience and convenience only strengthen their relationship with customers, as well as enhance their brand and visibility. These types of enhancements also strengthen a service provider’s ability to effectively compete. Of course all of these benefits are only won if the tech support service works. By that I mean, technicians show up on time, calls to customer service are answered quickly (and by human beings), and technical problems are resolved to customer’s satisfaction the first time. If expectations are poorly met, these tech support services could backfire and do just the opposite – weaken customer relationships and brand equity. Moral of the story – if you launch these services – make sure they work - the first time. If not, you’re better off without them.
Verizon Launches Premium Computer Tech Support Service
14 Jun, 2007
Verizon has launched a computer technical support service which targets the consumer market. Verizon Premium Technical Support will focus on consumer PCs, software, and home networking issues, and is a call in service. It provides 24/7 coverage and unlimited calls for $9.99/month. There is a 10 month commitment with an early termination fee of $31.00.
Check out this webpage for the details.
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Should Telephone Service be Free?
12 Oct, 2008
Comcast announced a new promotion last week that offers 12 months of free basic cable service for new customers who also sign up for an additional service. Customers who don’t want an additional service can get Comcast’s basic service of about 20 -30 channels for $10/month. The promotion is tied to the digital TV transition of February 2009 and entices potential customers to avoid the transition “hassle” by getting “free” cable service. “The simple fact is that basic cable is the easiest path through the digital transition and now consumers can get it for free,” said Derek Harrar, General Manager and Senior Vice President, Video Services for Comcast in a company statement. This move is similar to strategies pursued by other video service providers, who are hoping to leverage the digital TV transition for new subscriber additions.
But is this strategy a leading indicator for the future? Should basic core services like basic cable and basic telephone service be offered for free, used as a “carrot” to entice customers to buy “more important” services like broadband? Maybe a very basic phone service, with no LD, access to landline 911, and maybe outgoing service only (to avoid telemarketers) should be a free component of a bundled offering. Such a wireline service may appeal to a customer who previously cut the cord for wireless only, but also needs broadband. There is a growing portion of the population who find the value of traditional wireline phone service elsewhere – either through wireless or broadband/IP services. But, if they could get the security of landline 911, and an extra dial tone in their home as a free value add for subscribing to broadband (or video from a telco’s perspective), maybe a telco’s bundled offering may look more attractive than a comparable cable offering. I realize this idea is not appealing to the hundreds of ILECs who are a part of the current access/settlement system (in fact, it couldn’t work in the context of today’s regulatory structure), but I wonder whether it’s inevitable. In this possible future scenario, the current settlement system adapts to broadband as the underlying service, as opposed to voice.
This scenario cuts both ways. From a cable company’s perspective, a growing portion of the population is turning to the Internet as a source for their video content, and no longer see value in paying for a broad package of video as a part of a traditional subscription pay-TV service. But, if they could receive basic TV (which includes local broadcast affiliates) as a free value add for buying broadband, maybe the cable bundle is more attractive. In a true IP/broadband world, very basic phone and video service is relatively easy to deliver, and has little impact on bandwidth and network performance. Maybe the digital transition is opening the door to a future where free basic services are a regular component of a bundled offering. Thoughts?

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