Question 14.57

14.57 The multiple-play strategy.

Multiple play is a bundling strategy in which multiple services are provided over a single network. A common triple-play service these days is Internet, television, and telephone. The market for this service has become a key battleground among telecommunication, cable, and broadband service providers. A recent study compared the pricing (in dollars) among triple-play providers using DSL, cable, or fiber platforms.13 The following table summarizes the results from 47 providers.

754

Group
DSL 19 104.49 26.09
Cable 20 119.98 40.39
Fiber 8 83.87 31.78
  1. Plot the means versus the platform type. Does there appear to be a difference in pricing?
  2. Is it reasonable to assume that the variances are equal? Explain.
  3. The statistic is 3.39. Give the degrees of freedom and either an approximate (from a table) or an exact (from software) -value. What do you conclude?

14.57

(a) The pricing among triple-play providers does seem different. Cable has the highest prices followed by DSL. Fiber has the cheapest prices for tripleplay. (b) Yes, the largest is less than twice the smallest ; . (c) . There are significant differences in triple-play pricing among the difference provider platforms.