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Lack of Demand for BSP Multi-Play Services

Quadruple play assumes that a subscriber would want fixed and mobile voice with broadband internet and Pay TV through a single, bundled subscription. This idea is unlikely to gain traction over the medium term according to Pyramid Research.

"Not everybody wants triple play, let alone quadruple play," comments report lead author Guy Zibi. Indeed, triple play is difficult enough, as many telcos and cable companies are finding out. For example, most telcos are selling 1 to 1.5 revenue generating units (RGUs) per customers while cable companies perform slightly better, selling around 1.5 to 1.9 RGUs per customer. Many are finding that single play and double play offerings tend to grow faster.

"Quadruple play assumes that fixed voice remains a key, attractive option; in the Skype and mobile age, that is hardly the case" adds Zibi.

The promise of mobility as part of a quadruple play lies more with the increased ability of operators to build more powerful multi-play propositions. Double play has enjoyed higher adoption than triple play because a broadband service provider (BSP) can offer different combinations of the three services with double play bundles.

Similarly, with the inclusion of mobile services, a quadruple-play operator gains substantial flexibility in creating triple play bundles as it can move beyond the standard fixed voice, TV and broadband bundle. With mobile services, operators will be able to cater to the different usage patterns and needs of various income groups more effectively.

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