With the development of broadband, triple-play – the bundling of Internet access, VOIP and TV over IP - has become widespread among European homes, and today it is a major part of ISP offers.
The trend for mobile being added to the bundle (Quadruple Play) has accelerated as a result of two main factors :
-
The willingness of ISPs, historically present only on the fixed line, to continue the enrichment of their services by offering monetisable services such as mobile access
-
Mobile operators are increasingly keen to defend their customer base by offering ISP services (whether through alliance, wholesale deals or even acquisition)
The majority of major telcos therefore now address both fixed and mobile needs (Orange, Vodafone, Deutsch Telecom, Telefonica, ...).
The development of convergence offers is not new: since 2004 offers have leveraged technology enabling handsets, whilst in the subscribers home, to make and receive calls on either the mobile GSM network or the fixed network (using wireless technologies including wi-fi): the “Home Zone” proposition. These initiatives have used innovative technologies but have however had only limited success with users.
Since then, quadruple play offers that have launched in different forms value commercial convergence more than the technological convergence. Now the focus for players is to propose a traditional triple play offer with a technically mobile component.
Quadruple-play offers many opportunities for operators :
-
The opportunity to develop a new market segment :
-
ISPs are developing quadruple play offers as an opportunity to address the mobile market with its high margins and to enable them to increase their revenues with a new bundled service highly valued by the customer
-
The mobile operators capitalize on their expertise to offer mobile services alongside Internet / TV / VOIP to enable them to conquer the entire home and further grow into the world of media and entertainment
-
Reduced churn: By including additional services in the existing offerings, the link with the operator is strengthened, which tends to directly reduce churn.
-
Differentiation: Mobile offers(technically more complex than fixed offerings since it requires access to a mobile network) allows converged players to differentiate against their fixed competitors who have to make heavy investment to compete
Greenwich Consulting is confident that the development of quadruple play will be a major issue for telecom players in the coming years.
Facing the challenges of implementation will however be crucial to the success of these offers in various respects :
-
Brand: clear presentation of the offer to the customer (besides price)
-
Marketing: understanding the customer and presenting relevant offers
-
Economic risks: of a price war around fixed / mobile bundles
-
Technical: ensuring Quality of Service, especially for Value Added Services (such as HD)
| 