It’s no surprise that telcos are finding the bright spot in their quarterly earnings to be growth in video services, as evidenced by recent reports from IPTV innovator SureWest Communications and forward-thinking WindStream Communications.

But when battling one or more entrenched cable/satellite providers for customers, operators that often have deeper pockets, how do you continue video growth? While there’s no easy answer, non-telecom industry gurus say network expansion and growth are key.

The strategy already has worked for SureWest – it has acquired a broadband service provider well outside its Sacramento, Calif. service area in Kansas City. AT&T Inc. also has been expanding its service deployment by acquiring other operators. And Verizon Communications Inc.’s taking on the Big Apple.

But even when you finally become an incumbent yourself, how do you move from selling bits to selling movies? If we had a dollar for every time someone mentioned customer service as a differentiator, we’d all be on permanent vacation. And lovin’ it.

But Shelly Palmer, managing director for Advanced Media Ventures Group, believes that’s a core ingredient in the telco vs. anyone-else-in-the-TV-service battlefield. “Nobody recommends a TV provider based on their content. Why focus on customer service? That could be because when times get tough and money is tight, they cut agents from their call centers and do less-frequent truck rolls,” Palmer explains.

In the past, with little or no competition whatsoever, cablecos became infamous for their 9-5 arrival promises. Now, for many, it’s down to 10-2. And if you press, they might actually mention their limited Saturday hours.

Telcos have plenty of room for improvement on the customer service front, with many assessing sizable charges if service calls reveal a problem inside the home. Many others seem satisfied with endless direct mail bombing runs on the mailbox to acquire and/or upgrade consumers. Yikes.

That’s why it’ll be interesting to keep a close eye on a semi-pilot project Verizon is amidst in one county of Florida. FiOS customers are assigned personal account managers (PAM), actual people not hidden in call centers, that it hopes might put a happy face on customer service. That, in turn could result in fewer costs and greater sales, etc.

The PAM program could go regional in Florida in a month or so. I’m betting a ton will be learned whether it’s a gigantic success or a huge failure.

Other telcos, regardless of tier or wallet size, should be watching closely. Some might already do this but they don’t get the ink the huge telcos do. Same for cable.

This could be part, or more, of how you take telco TV to the next level. I’d rather wait on this effort than wait on an install/repair.

Stay tuned!