Because NXTComm08 is the main conference of the year that brings together all segments of the industry, it is no surprise that how these segments work together is a primary focus of the show. One expression of this is the service provider bundle -- whether it be a dual play of voice and data, a triple play of voice, data and Internet access or the coveted quad play of voice, data, Internet and wireless -- the merits of the bundle will be debated, declared and maybe even dismissed at this year’s NXTComm08 conference taking place this week in Las Vegas.

Talks of the quad play, heightened by the downfall of Pivot -- Sprint's joint venture with the leading cable companies to offer subscribers wireless services -- have been replaced with talks of the flex play at this year’s conference. On a panel discussing the virtues of the quad play at yesterday’s Insights for Next-Generation ILECs event, hosted by Telephony, four vendors to the rural IPTV service provider market agreed that the flex play and adding potential revenue-generating services trumps having a quad-play offering for most of their customer base. They did agree that having a wireless strategy was important, whether that be from a partnership or new arm of service, but it wasn’t the be-all/end-all. In fact, they also agreed that they weren’t yet ready to give up on the landline so quickly.

Russ Sharer, vice president of marketing at access infrastructure provider Occam Networks, said it is still very important to do creative things with the landline to keep customers involved with that part of the bundle going forward. While younger generations quickly dismiss the need for the service, he doesn’t expect it to go anywhere – anytime soon at least. This may be true, but the numbers on landline loss tell a somewhat different story. According to the Center for Disease Control, one in six American homes had no home landline, and nearly three in 10 households have only a cell phone or seldom, if ever, use their traditional phone. For this reason, telcos mark the loss of landline revenue as their biggest concern, says the Q2 Telecommunications Industry Issues Index. Either way you look at it, there has been a consistent and pervasive landline decline making U.S. operators nervous for some time now, and they are starting to make some changes in light of it.

Just yesterday, Verizon announced it would offer its first broadband bundle discount that does not require the purchase of a landline service. Its abbreviated bundle, the Flex Double Play, beginning this week, gives discounts of $8 to $12 per month for customers bundling wireless service with FiOS TV. No wireline needed. AT&T already has a plan like this as well.

Some may take it as a sign of the landline's slow but sure demise, but essentially it confirms what the Insight panelists were saying. It isn’t the quad play that makes a business successful and relevant going forward; it is the flex play. For some carriers a wireless service isn’t feasible based on their geography or customer base. The same may be true with IPTV. As diverse as the carriers are, their customers are only more so. Having flexible options that meet the varied needs of a diverse customer base is the only play that makes sense. As the landline business continues to erode, carriers should focus on ways to make it more vital and relevant to the customer. In the meantime, offering a bundle that lacks a landline service -- or whatever part of the bundle that may not be applicable to a specific carrier’s customer base -- rather than just offers a discount for it is the most important way the bundle can be truly flexible.

E-mail me at sreedy@telephonyonline.com.