Transforming Telcos: Evolving Convergence Opportunities
2016.08.02   |   63 pages   |   Convergence & M2M

Author:
Nicola Warren


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Fixed-mobile converged offers are not a new concept.  However, these offers have evolved since they were first introduced, moving from a straight-forward combination of the operator’s existing fixed and mobile capabilities towards sophisticated TV/content-led propositions that rely on strong entertainment services to deliver the differentiation that commoditised communication services have been unable to deliver on their own.

Operators are emphasising the entertainment component of converged bundles, as these illustrate the utility of high speed fixed and mobile services and therefore increase the perceived value of the converged offer.

  • MNOs are making significant investments to ensure the strength of their content going forward.

This report examines how this change has come about and what this means for operators considering their own convergence strategies in the current environment.

 

Companies: AT&T, Telefonica, Orange, DIRECTV, Canal+, Movistar

Countries: France, Spain, USA

Keywords: sponsorship, diversification, efficiency, U-verse, discounts, IPTV, customer value, single view of customer, studios, Livebox, Fusión, market share, sports, Orange TV, LTE, bundles, Homelive, films, churn, Movistar TV, Open, movies, Orange Mobile TV, unified customer experience, multi-device, Convergence, advertising, high definition, 4G, VOD, high speed broadband, multi-playm network speed, pay TV, Digital Life, ARPU, quad-play, entertainment, satellite, Movistar+, content, Canal+, fibre, DIRECTV,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

3

2.3

Currency and Conversions

3

2.4

Further Questions and Feedback

3

3

Market Drivers and Customer Trends

5

3.1

Introduction

5

3.2

Operator Market Drivers for Convergence

5

3.2.1

Market Share Maintenance

5

3.2.2

Churn Reduction

5

3.2.3

Customer Value Improvement

5

3.2.4

Efficiency Improvement

6

3.2.5

Revenue Diversification

6

3.3

Emerging Customer Trends

6

3.3.1

Faster Broadband Requirements

6

3.3.2

Evolving Entertainment Preferences

6

3.3.3

Increased Value-Seeking Behaviour

7

3.3.4

Multi-Device Ownership

7

4

Multi-Play Evolution

8

4.1

Orange, France

8

4.1.1

Introduction

8

4.1.2

Multi-Play Capabilities

8

4.1.3

Orange Multi-play Capability in Other Key Markets

11

4.1.3.1

Spain

11

4.1.3.2

Poland

11

4.1.3.3

Belgium

12

4.1.4

Multi-Play Propositions

13

4.1.5

Performance (figures/KPI)

18

4.1.6

Lessons Learned

21

4.2

Telefónica, Spain

23

4.2.1

Introduction

23

4.2.2

Multi-play Capabilities

24

4.2.3

Telefónica Multi-play Capability in Other Key Markets

28

4.2.3.1

Germany

28

4.2.3.2

Brazil

29

4.2.4

Multi-Play Propositions

30

4.2.5

Performance (figures/KPI)

36

4.2.6

Lessons Learned

40

4.3

AT&T, USA

43

4.3.1

Introduction

43

4.3.2

Multi-Play Capabilities

43

4.3.3

Multi-Play Propositions (& Positioning)

48

4.3.4

Performance (figures/KPI)

54

4.3.5

Lessons Learned

56

5

Key Findings

60

5.1

Drivers of Converged Offers

60

5.2

Multi-Play Trends Based on Case Studies

60

5.2.1

Network Speeds

60

5.2.2

Increased Video Content Focus

61

5.2.3

Pricing

61

5.2.4

System Integration

62

5.2.5

Beyond Quad-play

62

6

Recommendations

63

 

Appendix – Feedback Questions

64

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