Quad-play overrated for cable, analyst says

Despite the oft-discussed benefits of the bundle and the relatively recession-proof nature of wireless, AT&T and Verizon Wireless are essentially the only major US operators to offer a true quad-play today. Cable companies are making moves in the wireless space, but at least one industry analyst is not convinced they should even bother with a wireless service at all. According to Bernstein analyst Craig Moffett, academic research shows that bundles have a negative utility in economic terms, meaning customers have to be compensated for agreeing to accept restricted choice. The argument in favor of wireless is that competing telcos have it and, as more cable customers cut the cord on their landlines, they must turn to wireless to stay competitive. Moffett calls this theory thin.