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Strategy Analytics: Mobile Operators Risk Losing Billions of Euros to Triple and Quad Play
Boston, MA - May 24, 2010 –Mobile Operators risk losing billions in revenue unless they compete effectively with large fixed-service providers offering Triple or Quad Play. Strategy Analytics Tariff and Revenue Strategies (TRS) service modeled the market and revenue potential for a Mobile Broadband Triple Play (MBTP) service that could compete against this threat, in the report, “How Mobile Broadband Wins Against Quad Play.” Operators should consider bundling Mobile Broadband plus Internet Broadband and Home Phone - a service package that 4G networks will soon be able to deliver.
TRM projected responses in six key markets - France, Germany, Italy, Spain, UK, US - where between one-quarter and one-third of users would consider purchasing the MBTP bundle rather than a full Quad Play solution that included TV at a slightly higher price. On an annual basis the risk exposure could be over 10 billion Euros each in France, Germany and Italy and nearly 70 billion dollars in the US.
Sue Rudd, Director of TRS notes, “Mobile operators can defend themselves with new combinations of Triple Play for Mobile Services like MBTP. The Quad Play threat has become very real.” Rudd added, “In March AT&T's fixed business U-verse Triple Play included a mobile voice option. Now AT&T has launched full Quad Play with integrated mobile data.
“Service providers need to understand the optimal mix of price points, features and brand positioning across a wide range of current and potential multi-play service options to develop competitive responses in their markets.” added David Kerr, Vice President. “Strategy Analytics provides a tool set that allows operators to evaluate these responses for current and future value propositions.”
The scenario results are described in a two part report that addresses several key questions:
• Where are the projected annual revenues for bundled multi-play services?
• What services are currently purchased by users who would switch to MBTP?
• Where can MBTP compete successfully with Quad play service bundles?
• Which countries offer the best opportunities for new multi-play service bundles?
For a complimentary Executive Summary please click here.
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