Quad-play: How to Grow Customer Lifetime Value
2014.08.27   |   34 pages   |   Convergence & M2M

Jon Newman



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Converged telecommunications and entertainment propositions are on the rise across the world. These bundles typically offer the customer a discount over the purchase of individual services - therefore operators must maximise the value extracted from the customer.

What are the options that operators should consider if they are to prevent value erosion through multi-play discounts?

  • Many quad-play propositions are quad-play in name only: the mobile component is purchased and billed separately, customer care for the TV business is standalone, and so on. Achieving true convergence will reduce costs and improve customer satisfaction - this report provides advice on how to check current status and move towards true convergence.
  • Pricing strategies are key and are discussed.
  • Correct targeting will also make a huge difference. Should operators target small businesses with consumer quad-play propositions? What about family and household propositions?
  • In some markets, copper (or fibre) local loops are missing and uneconomic to deploy. This report examines how innovative operators in the developing world have found ways to plug that gap.
  • Big data is a popular term - but how is it relevant for analysing quad-play customers and products, and for targeting customers with cross-sell products?

The purpose of this report is to inspire the reader to action by providing a set of conclusions and recommended actions for current or aspiring quad-play operators.

Companies: Vodafone Spain, Vodafone Ireland, Telstra, Melita, Nos, TDC, Sky Ireland, Sky UK, Digicel Tonga, Eircom, TDC Denmark, Bell Canada, Bouygues Telecom, Etisalat UAE, Idiro Technologies

Countries: Ireland, Australia, Spain, France, UAE, Malta, UK, Canada, Denmark, Portugal, Tonga

Keywords: Broadband, Vodafone RED, Pay-TV, BBox, Hybrid prepay, Bundle, Triple-play, PSTN, Multi-play, DigiHome, Mobile, LTV, Convergence, Lifetime value, eLife, Sky Go, Quad-play,

Table of Contents
1 Overview 1
2 Introduction 2
2.1 Background 2
2.2 Report Content 2
2.3 Currency and Conversions 3
2.4 Further Questions and Feedback 3
3 Quad-play Convergence Importance 4
3.1 What is Quad-play Convergence? 4
3.1.1 Convergence Definitions 4
3.1.2 Triple-play and Quad-play Convergence 4
3.2 Trends in Quad-play Service Components 5
3.2.1 The Decline of Home Voice Services 6
3.2.2 Consumer Mobile Reaches Saturation in Many Countries 7
3.2.3 TV Spend Growth Despite Alternative Media Challenge 8
3.2.4 Broadband Continues to Grow 9
3.3 The Growth of Converged Propositions 9
3.4 Drivers of Quad-play and Triple-play Convergence 11
3.4.1 Reducing Churn 11
3.4.2 Revenue Growth/Diversification 12
3.4.3 Strategic Imperatives 12
3.5 Key Success Factors for Quad-play Services Uptake 12
3.6 Routes to Convergence in Ireland - a Case Study 13
4 Methods for Increasing Lifetime Value 17
4.1 Introduction 17
4.2 Focus on Achieving True Quad-play Convergence 17
4.2.1 Brand Identity 17
4.2.2 A Single Joining Process 18
4.2.3 Converged Customer Care 19
4.2.4 Converged Billing 19
4.3 Pricing Strategy Options 20
4.3.1 Acquisition Tariff Promotions 20
4.4 Targeting Propositions at Small Businesses 22
4.5 Integrating with Mobile Family Tariffs 23
4.6 Home Voice Service via Wireless 25
4.7 Big Data and Quad-play 27
4.8 Cross-sell and Up-sell 28
5 Conclusions and Recommendations 32
5.1 Creating a Truly Converged Proposition 32
5.2 Search for the Opportunities in Pricing 32
5.3 Review the Small Business Opportunity 32
5.4 Focus on the Family 32
5.5 Exploit Wireless for Landlines 32
5.6 Exploit Big Data Insights 33
5.7 Exploit Cross-sell Opportunities 33
5.8 Focus on the Weakest Link 33
5.9 Do Not Miss the Boat 34
  Appendix 1 - Convergence Audit Checklist 35
  Appendix 2 - Feedback Questions 36

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