Skip to main content

Multi-Play Strategy: When to Discount, or Not

According to Pyramid Research, Belgium�s Telenet does not follow the traditional triple play model of offering bundles with a discount. Rather, the operator is betting on the price value and service differentiation of each individual product (telephony, broadband access and television) to simply sell itself.

Telenet is successful; both revenues and revenue-generating units (RGUs) have grown by 8 percent in 2005. Conversely, the largest cable provider in the U.S., Comcast, is offering as much as $50 in discounts per month for triple play adopters over the total price for these services if they are purchased individually. Are triple play discounts necessary, or could Belgium�s altnet be onto something?

Pyramid found two main reasons why Telenet has deviated from the bundling path. First, until mid-2005, bundling services in Belgium was illegal. More importantly, however, the company simply does not see a current need for moving to pre-set bundles given the success it is experiencing in selling two or three services on an �unbundled� standalone basis.

Linked to this, there appears to be no real competitive pressure to offer discounted pre-set bundles. In broadband, the company has secured leadership on bandwidth speeds; for telephony it offers a very competitive flat-rate tariff, and has actually seen its share of fixed-connections in Belgium grow. In TV, no other major cable TV operators compete in Telenet�s franchise area in a meaningful way. Furthermore, there is no tradition of DTH in Belgium, with Belgium�s first DTH satellite TV provider - TV Vlaanderen � only launching services in Q1 2006.

Meanwhile Belgacom�s IPTV service, despite being available across Belgium, has experienced low uptake since its launch in June 2005, partially as end-users are unfamiliar with taking services from a traditional telco, but also because Belgacom�s price points are higher. In April 2006, Belgacom had 50,000 IPTV subscribers. Of these, Telenet estimates that only 10,000-15,000 subscribers were in its TV network coverage area.

Popular posts from this blog

Manufacturers Benefit from GenAI Apps

Digital transformation goals continue to influence large enterprise IT spending. Generative Artificial Intelligence (GenAI) has now emerged as a transformative technology. Its ability to create entirely new business models or designs holds immense promise across industries. Still, a recent market study by ABI Research, presented at the 'Hannover Messe 2024' event, paints a somewhat cautious picture of GenAI adoption in the global manufacturing sector. ABI Research highlighted a strong presence of GenAI at the event, with industrial software vendors showcasing its application in the form of AI assistants and co-pilots. They forecast revenue from GenAI use cases in manufacturing will reach $10.5 billion by 2034. Manufacturing GenAI Market Development "The dominant use cases leverage core strengths of Large Language Models (LLMs) for Programmable Logic Controller (PLC) programming, code generation, step-by-step work instructions, and data enrichment and consolidation,"