Blog Post

AT&T Loses the Landline With New Triple Play

AT&T (s T) today launched a new bundle of services containing video, data and voice, but this time consumers can choose whether they want wireless or a landline (it could be VoIP or a traditional circuit-switched line) for voice. This upends the idea that after the triple play, the next big ISP offering would be a quadruple play, that includes voice, video data and mobility.

It also gives consumers a bit more choice in terms of paying for a service they actually use. AT&T still will offer a quadruple play for those who want it, but flexibility around voice gives AT&T an offering that the cable providers can’t match today with their bundles.

For those of us watching the technical limits between TV, voice and the web erode (it’s going to be all IP soon enough), the willingness of a major service provider to accept that the landline is dying (and maybe hasten its death) is a hopeful sign. AT&T is doing this to help differentiate itself from its cable competitors, but if competition can lead to a phone company shrinking its bundle, there’s still hope.

I’d like to see the bundle compress further. A wireline data and mobile data/voice offering would be awesome. Already there are people who buy wireless and wireline data — (and some who just go all wireless) — and leave the pay TV and landlines for those living in the 20th century. The key will be getting speeds that are fast enough and unencumbered by artificially low caps and tiers.

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4 Responses to “AT&T Loses the Landline With New Triple Play”

  1. The reason the landline is going away willingly is because AT&T is stepping up femtocell deployments in a HUGE way – right now. See the article I wrote about how they are strategic to AT&T.

    Femto’s will be a key weapon against subscriber churn and will render fixed landlines meaningless. 70% of cell phone calls are made at home.

    Combined boxes from Cisco (see article) as well as 2wire etc definitely indicate a combined services and billing play – to your point.

  2. Sounds like a very good move on AT&T’s part and I am sure other phone companies will follow. This definitely gives them a way to gain market share being the cable companies do not have cell phones…yet.

    The land line is dying and I know many people who either don’t have it or have it and don’t use it, including myself. I use Verizon and hope they start a service like this soon. I could also see where many in my area who use the cable companies triple play would switch to save a few bucks.