Commoditisation of fixed telephony and Internet access services has led to a decline in spend on telcos’ core residential services, forcing telcos to look beyond traditional services for future growth. In the belief that bundling increases the attractiveness of service packages and improves customer retention, operators are staking their future on multi-play, viewing it as a means of achieving growth and differentiation. However, a number of players will be competing for the same customers by offering the same set of services – and not everyone can win.
The Impact of the Multi-service Play: scenarios for future growth evaluates the claims made for multi-play strategies and examines the impact that these strategies are likely to have on the market as a whole. This report answers your key questions:
- What are the drivers of demand for multi-play?
- What level of market penetration could double- or triple-play services achieve?
- What multi-play strategies are available and how will market conditions affect the choice of strategy?
- Which market strategies are likely to maximise adoption?
- What impact will multi-play have on ARPUs and total market spend?
- Which players are best positioned to capitalise on the market opportunities in multi-play?
- Will a market exist for single-play services?
Two scenarios for multi-play competition are modelled in the report: price-driven and value-driven. Subscriber splits, ARPU trends and market spend are outlined for each scenario. The report also examines the local variables that will influence which scenarios dominate in different Western European country markets.
