Skip to main content

Why Legacy Quad-Play Service Strategies are Failing

The latest market study findings from Frost & Sullivan provides strategic recommendations for broadband service providers. The results show that residential consumers in North America rate Internet service the highest in importance, followed by wireless, subscription video, and then voice.

Statistics related to the services consumed concurred with these rankings -- with 97.3 percent of respondents subscribing to an Internet service, and 78.9 percent subscribing to landline telephone service.

Finally, among other results, the survey found that Internet usage now exceeds conventional television viewing for more consumers with a data connection.

"The implications of these results portend a transformation in consumer perceptions," said Mike Jude, program manager at Frost & Sullivan. “Our findings made it very clear that consumption of the services that ride access channels -- voice and video -- are in decline."

It begs the question: does this mean the two access services, broadband and wireless, are increasing in importance to consumers? The simple answer is yes. The trend is indicative of a big shift in the marketplace.

The market study highlights include:


Basic Telephone Service: Not Quit Dead Yet

While it is true that landline telephone service is continuing to erode, with year-over-year annual erosion approaching 3 percent, the survey found that nearly 79 percent of respondents still maintain a landline telephone service.

However, more than 25 percent indicated they had dropped a landline service in their lifetime. At its peak, landline telephone service was used by 95 percent of consumers; however, factors like cellphone ownership, price and mobility continue to erode this figure.

Subscription Television: A Declining Notion

Landline telephone service is not the only area where consumer interest is waning, as subscription television service also shows a slow to negative growth dynamic. In fact, conventional cable subscriptions show a marked decline, down 12 percent in the third quarter (Q3) 2013 from Q3 2007.

Broadband: The Evolving Everything Service

Broadband Internet access is a growing market. With year-over-year growth at 3.7 percent from 2012 to 2013, the survey showed satellite-delivered broadband as well as fiber and cable continue to have considerable increases, while DSL is declining.

This makes it clear that Internet access technologies that deliver higher throughput than older copper-based technologies (like DSL) are growing in popularity among consumers. Stratecast predicts DSL will see a significant dive in subscriptions in the years to come.

Wireless: A New Mobile Dynamic

Wireless continues its inexorable penetration among consumers. Subscribership, especially in the prepaid space, is increasing, although at a slower pace than in the past.

“The slowdown in wireless is due to subscriber saturation, and also because subscriptions can cover more than one device, said Jude.

Quad-Play: the End of an Era

The bigger picture is the fact that consumers are increasingly harnessing mobile devices as a medium for the delivery of data-based applications. Services are now applications, mostly written in software, and instantiated over IP-based connections.

The result; the era of quad-play services is over and now the new dual play of landline and wireless broadband is what matters most.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C