Skip to main content

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.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the