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Triple Play and Service Bundling: Strategies in the European Market


Description: Triple play is only one of several service bundles which are playing an increasingly important role in telecoms market development. Moreover, broadband has emerged as the central hub of the bundling trend. There are two main reasons for this:

-broadband subscriptions comprise the fastest-growing sector of the European telecoms market
-with broadband, it is possible to deliver all the fixed-line elements of a service bundle over the same access technology.

For the purposes of this report, we consider service bundles comprising broadband and one or more of the following other services:
-landline telephony
-home TV
-mobile.

Key messages
-Service bundling is about more (and less) than triple play
-Service bundling started with cable
An expanding range of offerings, centred on broadband

Main types of service bundle offered
-Dual play
-Triple play
-Quad play

What do customers like about service bundles?
-Discounts
-Added value
-New features and functionality
-The main drawback for customers in service bundling is loss of clarity

Bundle implementation issues
-Organisation
-Customer support
-Brand

The roles of service bundling in corporate strategy
-Corporate strategy goals that service bundling can address
-Examples of service bundle providers’ strategic drivers
-Bundle marketing should be shaped by strategic objectives
-How corporate goals shape the overall bundle marketing strategy

Service bundling for incumbent telcos
-Pros and cons of service bundling for incumbent telcos
-Strategic drivers for incumbent telcos
-Bundle products from incumbent telcos

Service bundling for non-incumbent ISPs
-Pros and cons of service bundling for non-incumbent ISPs
-Strategic drivers for non-incumbent ISPs
-Bundle products from non-incumbent ISPs

Service bundling for mobile operators
-Pros and cons of service bundling for mobile operators
-Strategic drivers for mobile operators
-Bundle products from mobile operators

Service bundling for TV service providers
-Pros and cons of service bundling for pay-TV service providers
-Strategic drivers for pay-TV service providers
-Bundle products from TV service providers


Contents: Table of figures

Figure 1 Broadband is the hub around which service bundling revolves
Figure 2 Fixed line services are a household sell; mobile is an individual sell
Figure 3 The effects of corporate strategy on bundle marketing
Figure 4 Corporate goals and bundle marketing strategy
Figure 5 Pros and cons: incumbent telco entering the TV market
Figure 6 Overall bundle marketing strategy for incumbent telcos
Figure 7 Pros and cons: non-incumbent ISP entering the TV and home telephony markets
Figure 8 Overall bundle marketing strategy for non-incumbent ISPs
Figure 9 Pros and cons: mobile operator entering the broadband market
Figure 10 Pros and cons: mobile operator entering the home TV market
Figure 11 Overall bundle marketing strategy for mobile operators
Figure 12 Pros and cons: pay-TV provider entering the broadband and home telephony market
Figure 13 Pros and cons: cable operator entering the mobile market
Figure 14 Overall bundle marketing strategy for TV service providers




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