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Lead Analyst: Dr Jean-Pierre Aubertin
Publication Date: 27/07/06
Pages: 130  

 
Description 

Service providers are increasingly looking at bundling as a means of reducing churn and increasing revenue. They hope to build on their success with two-play by deploying triple and quadruple play packages. But what effect does the movement from two-play to triple and quadruple play have on KPIs? Does the perceived value justify the added costs? This report will tell you.

Visiongain has found large regional disparities between the number of households subscribing to bundled services. Similarly, the evolution of triple and quadruple play is going to differ drastically by region. How large will these variations be? Where are the biggest opportunities? This report answers these questions, and more.

Visiongain believes that all bundling activities must be centred around the Internet. How can your company leverage the internet to create successful bundled offerings? Purchase this timely report to find out.

Bundling has the potential to revive the fortunes of service providers if they develop packages that are in tune with their market segmentations. However, these service providers also face significant hurdles along the way. What difficulties do service providers face in convincing people to switch to triple and quadruple play packages? Will the deployment of IPTV packages by telcos be an essential part of their overall strategy to remain competitive? Is there a proven business case for moving to quad play?

This 130-page report provides an analysis of the current triple and quadruple play markets, including product offerings, pricing, strategies and business case viability. It also explores the opportunity for bundled services to households as the market evolves.

Among others, the report answers questions including:

- What challenges does adding wireless to the triple-play bundle present?
- What benefits can quadruple play bring to the triple play offering?
- What lessons can be learned from early quad play offerings?
- What is the most important component of a quad play bundle?
- How does bundling differ by region?
- How large is the demand for service bundles by consumers?
- How will bundling evolve on a regioanl level through 2011?

Forecasts are provided and discussed in terms of geographical and technological markets, and the factors that are driving forward bundling are discussed in this report. The report also provides strategies and recommendations that are applicable to fixed and mobile operators, cable operators, and ISPs.

Table of Contents 
Chapter 1 Executive Summary

1.1  Evolution of the telecoms and entertainment markets
1.2  Market opportunities
1.3  Major market Trends
1.3.1  Significant growth in mobile subscribers
1.3.2  Falling operator revenues
1.3.3  Outsourcing grows in popularity
1.4  Future of the Wi-Fi market
1.5  Evolution of household entertainment media
1.5.1  Importance of broadband access
1.5.1.1 IPTV prospects
1.6  Evolution of bundled service packages
1.7  Business models
1.8  Conclusions

Chapter 2 Introduction

2.1  Overview
Table 2.1: IP-to-PSTN vs BT's PSTN tariff and Virgin Mobile, H1 2006
Chart 2.2:  Global hybrid cellular/WLAN handset
2.2  Responses to falling revenues
2.3  Bundle definition
2.3.1  Triple play definition
2.3.2  Quadruple play
2.4  Cable vs telcos approach to bundling
2.5  Must have and nice to have services
2.6  Value of triple/quadruple play to service providers
2.7  Revenue generating options
2.7.1  Fixed telephony
2.7.2  Broadband
2.7.3  IPTV
2.7.4  Wi-Fi telephony
2.7.5  Consumer VoIP telephony
2.7.6  Mobile services
2.8  Mobile and VoIP
2.9  Report methodology
2.9.1  Organisation of the Report
2.9.2  Aims and Focus of this Report

Chapter 3 Global market analysis and forecasts

3.1  Market overview
3.2  IPTV is the key to effective bundling
3.4  IPTV is the way forward, as long as the applications are right
3.5  The mechanism behind IPTV
3.6  Technology providers
Table 3.1  Vendors providing IPTV technologies, 2006
3.7  IPTV market drivers
Chart 3.1:  Churn rate of standalone service vs triple play packages
3.7.1  Broadband penetration on the rise
3.7.2  Competition between cable operators and telcos boost to IPTV market
3.7.3  Choice of content is expanding
3.7.4  Fibre to the home boost IPTV distribution
3.7.5  High definition broadcasting is creating a demand for IPTV services
3.7.6  Higher expectations among users make them look around for better services
3.8  IPTV market challenges
3.8.1 Technical challenges
3.8.2  Content challenges
Chart 3.2:  Global household penetration of IPTV, 2005 & 2011
3.8.3  Content security
3.9  Commercial challenges
3.10  IPTV Market Restraints
3.10.1  Regulatory issues
3.10.2  Lack of bandwidth
3.10.3  DSL coverage
3.10.4  Proprietary technologies
3.10.5  Consumers education
3.11  Market Trends
3.11.1  Set-top boxes
3.11.2  Fibre and DSL deployment
3.11.3  IPTV services market forces
3.12  Target market
3.13  Demographic and core data
Table 3.2:  Global cable/satellite TV, Internet and broadband households, 2005-2011
Table 3.3:  Worldwide mobile subscribers and revenues, 2005-2011
Table 3.4:  Mobile subscribers by region, 2005-2011 (%)
Table 3.5:  Mobile revenues by region, 2005-2011 (%)
Table 3.6:  Countries with 100%+ mobile penetration as of Q4 2005
Table 3.7:  Cellular mobile services competition (%), 2006
Table 3.8: Top 10 mobile operators by proportionate subscribers, 2006
Table 3.9:  Broadband penetration by economies worldwide, 2006
Table 3.10:  Worldwide IPTV subscribers and revenues, 2005-2011
Table 3.11:  IPTV subscribers by region, 2005-2011
Table 3.12:  IPTV revenues by region, 2005-2011
3.14  Case studies
3.14.1  Fastweb
3.14.2  NTL-Virgin
3.14.2.1  Strategy
3.14.3 Neuf Cegetel
3.14.3.1  Strategy
3.14.4  Iliad
3.14.5  Verizon
3.14.5.1  Verizon triple play
3.14.5.2  Strategy
3.14.6  Telstra

Chapter 4 North American market analysis and forecasts

4.1  North Americas
4.1.1  Market overview
4.1.2  Demographic and core data
Table 4.1:  North American internet, broadband and     cable/satellite TV households, 2005-2011
Table 4.2:  North American mobile subscribers and revenues, 2005-2011
Table 4.3:  North American IPTV subscribers and revenues, 2005-2011
4.1.3  Services demand
4.1.4  Fixed-line displacement trends
Table 4.4:  North American households subscribing to bundled packages (by service type), 2005-2011
4.1.5  Services revenues provision of bundle services will increase in line with the rise in subscribers
Table 4.5:  North American market revenue growth from bundled services, 2005-2011
4.1.6  Challenges
4.1.6.1  Lower margins and revenue from promotional offers aimed at attracting customers
4.1.6.2  Changes associated with OSS/BSS provisioning of a single bill to customers
4.1.6.3  Costs of implementing a bundling strategy
4.1.6.4  Developing and managing new relationships needed to offer a wide range of services
4.1.6.5  Increased competition by new entrants from the IP sector
4.1.7  Market drivers
4.1.7.1  Reduced churn and potential for additional revenue
4.1.7.2  Improved customer experience
4.1.7.3  Promotional discounts and offers on bundles
4.1.7.4  Bundle pricing
Table 4.6:  Pricing of bundled service packages by type
4.1.7.5  Single point of contact for all subscribed services
4.1.7.6  Competition between telcos, cable companies, and new entrants
4.1.8  Market restraints
4.1.8.1  Badly deployed OSS/BSS systems
4.1.8.2  Regulatory hurdles that affect deployment of services
4.1.8.3  High marketing costs associated with customer acquisition
4.1.8.4  Competition between telcos, cable companies, and new entrants
4.1.9 Market trends
4.1.9.1  Merger & Acquisition
4.1.9.2  Strategic alliances & partnerships
4.1.9.3  Customer demands
4.1.9.4  Network and service convergence
4.1.9.5  Technology
4.1.9.5.1  ADSL and beyond
Table 4.7:  Application vs required bandwidth, 2006
Table 4.8  Maximum up/down speed per technology
4.1.9.5.1.2  VCC is coming
4.1.10  Bundle offering
Table 4.9  Typical US bundles type, Q2 2006
4.1.10.1  Bundle solutions
4.1.11  Quadruple play readiness
4.1.1.11.1  US market
Table 4.10  North American bundle service providers, Q2 2006
Table 4.11:  Bresnan Communications subscribers by service type
4.1.11.2 Canadian Market

Chapter 5 Latin America market analysis and forecasts

5.1  Market Overview
5.2  Demographic and core data
Table 5.1:  Latin American internet, broadband and cable/satellite TV households, 2005-2011
Table 5.2:  Latin America mobile subscribers and revenues, 2005-2011
Table 5.3: Latin America IPTV subscribers and revenues, 2005-2011
5.3  Quadruple Play Readiness
Table 5.4:  Bundle service providers in Latin America
5.3.1  Argentina
5.3.2  Brazil
5.3.3  Mexico
5.4  Bolivia
5.5  Chile
5.6  Colombia
5.7  Ecuador
5.8  Peru
5.9  Nicaragua

Chapter 6 European market analysis and forecasts

6.1  Market Overview
6.2  European triple play players
Table 6.1  European bundle players, Q2 2006
6.3  Demographic and core data
Table 6.2:  European internet, broadband and cable/satellite TV households, 2005-2011
6.4  Services demand
Table 6.3:  European households subscribing to bundled services (by service type), 2005-2011
Table 6.4:  European examples of bundles, Q2 2006
Table 6.5:  European mobile subscribers and revenues, 2005-2011
Table 6.6: European IPTV subscribers and revenues, 2005-2011
6.5  European market trends
Table 6.7:  European service providers offering bundled services, Q2 2006
Table 6.8:  UK typical bundle offering
6.6  Merger & Acquisitions
6.7  Quadruple play readiness
6.7.1  Carphone Warehouse
6.7.2  BT
6.7.3  Vodafone
6.7.4  O2
6.7.5  Orange
6.7.6  Belgium
6.7.7  Spain
6.7.8  Norway
6.7.9  Switzerland
6.7.10  Germany

Chapter 7 Asia-Pacific market analysis and forecasts

7.1  Market Overview
7.2  Demographic and core data
Table 7.1:  Asia-Pacific internet, broadband and cable/satellite T V households 2005-2011
7.3 Services demand
Table 7.2:  Asia-Pacific households subscribing to bundled packages (by service type), 2005-2011
Table 7.3:  Asia-Pacific mobile subscribers and revenues, 2005-2011
7.4  IPTV in Asia-Pacific
Table 7.3: Asia-Pacific IPTV subscribers and revenues, 2005-2011
7.5  Quadruple play readiness
Table 7.6:  Asia-Pacific bundle service providers, Q2 2006
7.5.1  Japan
7.5.2  Hong Kong
7.5.3  Australia
7.5.3  India
7.5.4  China

Chapter 8 MEA market analysis and forecasts

8.1  Market Overview
8.2  Demographic and core data
Table 8.1: MEA internet, broadband and cable/satellite TV households, 2005-2011
8.3  Services demand
Table 8.2:  MEA households subscribing to bundled packages (by service type), 2005-2011
8.4  Mobile service
Table 8.3:  MEA mobile subscribers and revenues, 2005-2011
Table 8.4:  MEA IPTV subscribers and revenues, 2005-2011
8.5  Quadruple play readiness
8.5.1  The MEA region 
Table 8.5:  MEA bundle service providers, Q2 2006

Chapter 9 Recommendations and strategies for success

9.1  Overview
9.2  Strategy for service providers
9.2.1  Customers expectations
9.3  Strategies based on marketing approach
9.3.1  Improved services
9.3.2  Segmentation
9.4  Promoting basic IPTV services
9.5  Fixed-line operator strategies
9.5.1  Strategy based on outsourcing
9.5.2  Flexing financial might
9.5.3  Re-merging
9.6  Strategy for mobile only operators
9.6.1  Partnerships
9.6.2  Strategy based on technology
9.6.2.1 Vendors
9.6.2.2  Import proven technologies
9.7  Strategy for ISPs
9.7.1  More play options
9.8  Strategies based on strategic alliances
9.8.1  Alliances
9.8.2  Adding value
9.9  Strategies based on pricing

Appendix A Lead author’s profile

Appendix B About visiongain

Appendix C Report evaluation form

Organisations Listed 
3
Adelphia
Advance/Newhouse Communications
Alcatel
Allied Telesyn
Amena
Andinatel
ANEW Broadband
AOL
Atlas
Auna
BB2
Be
Bharti Televentures
Brasil Telecom
Bresnan Communications
Broadcom
BT
Cablecom
Cablevisao
Cablevision
Call-Nett
Canal+
Carphone Warehouse
CAT Telecom
Cesky Telecom
China Netcom
China Telecom
Cingular
Cisco
CMT
Comcast
Connex
Cox
Deutsche Telekom
E Plus
Eagle Rock
EarthLink
EastLink
Easynet
eBay
Embratel
Entel
Entel Movil
Ericsson
Ertach
ETISelect
Eurotel Praha
Fastweb
FCC
Foxtel
France Telecom
Freeview
GigaBeam
Google
Grupo Clarín
iiNet
Iliad
INTRACOM
Iplan
Jordan Telecom
Kuwait Telecom
Liberty Media
Manx Telecom
Maxcom
Microcell Telecommunications
Microsoft
MobileIGNITE
Mobistar
MTC
MTNL
Myrio
Net Serviços
Net4India
Neuf Cegetel
Nokia
NTL-Virgin Mobile
NTT DoCoMo
O2
Ono
Orange
Pacifictel
PCCW
Philips
Primus Canada Telecommunications
Primus Telecommunications
Progress Energy
Qwest
RabbitPoint
Redback Networks
Rogers/Fido
Saudi Telecom
SBC
SBC/AT&T
Shaw Communications
Siemens
Sistematica
SIT
Sky
Skype
Softbank
Sonatel
Sprint Nextel
Sunday Communications
Telecom Argentina
Telecom Egypt
Telecom Italia
Telecom New Zealand
Telefónica
Telefonica Moviles
Telemar
Telenor
Telewest
TeliaSonera
Telkom
Telkonet
Telmex Argentina
Telstra
Telus
TerraSip
Texas Instrument
Time Warner Cable
T-Mobile
T-Online
TPS
TransAct
UPC
UTStarcom
Verizon
Videotron
Vivax
Vodafone
Vontel
VTR GlobalCom
Ya.com
Yahoo
ZTE