Anyone who has taken a do-it-yourself approach to home networking gets exactly why we need Best Buy’s Geek Squad. As digital media technology finds more locations within the home, and becomes increasingly complex, there’s a growing need for technical experts to help make it all work together. Today’s homes have begun to resemble small businesses, with multiple networked computers and increasingly networked devices like printers and entertainment systems. It’s no surprise that Geek Squad, which pioneered the business of dispatching a national network of trained technicians, has built a highly visible service brand that positions Best Buy for the future.
Now it’s time for telecom service providers to get in on the Geek Squad game. Carriers such as AT&T and Verizon Communications are doing an impressive job of bundling services like video, telephone, and Internet to meet customer demand. We expect the number of customers buying three communications services from the same provider to increase 29 percent a year for the next two years. But the proliferation of services and digital options is causing problems on the home front. No fewer than 15 percent of the calls to the customer service center at cable provider Cox Communications involve home networking problems. Such frustrations have opened the door for an army of versatile technicians, who, unlike the traditional cable installer or telephone repairman, can integrate Internet, TV, phone, and digital entertainment.
To date, most telecom and cable providers have shied away from the opportunity, fearing the cost and potential drain on resources. But now they’re facing slower growth rates not just for traditional wired communications, but wireless services, too. Mobile-phone subscriber growth is expected to slow, to 2.5 percent, by 2012, down from 7.5 percent today. As that growth slows, a new battleground will emerge, this one over servicing customers’ digital media needs.
The…