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The Challenges and Opportunities of Competing in the Bundled-Services Market
Ovum, July 2006, Pages: 10
The recent bundled-service packages launched in the UK by Carphone Warehouse (CPW) and Orange are the first to bundle a mobile voice service with ‘free’ broadband access. Until recently, consumers have had to purchase mobile and broadband services separately, but these new bundles may change this trend. The potential of service bundles is demonstrated by the CPW bundle, which captured 340,000 customers within eight weeks.
Competition will get stronger in an increasingly converged market, as more operators strive to offer bundled services. Service providers must overcome the challenges of providing bundled-service packages, such as complex billing, before they can achieve the potential rewards of gaining new users and retaining existing subscribers. Here we examine the challenges and opportunities that face operators deciding to offer bundled products.
A converging market
Challenges and opportunities of providing convergent bundles
Case study: Orange
Drawbacks of Orange’s bundle
Advantages of Orange’s bundle
Case study: Carphone Warehouse
Current obstacles for CPW
Potential benefits for CPW
Savings only for the right consumers
What is on the horizon?