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The Service design and pricing in converged bundles: leveraging superfast broadband, video and fixed voice

  • February 2016
  • 33 pages
  • Analysys Mason
Report ID: 3631725

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Fixed and mobile service elements of converged bundles can interact, but service design must attend equally to pricing and convergence use cases

Designing converged bundles is a complex task for operators due to potential interactions between fixed and mobile services.

Bundling key service elements such as fixed broadband, pay-TV and fixed voice within converged bundles requires a careful assessment of whether – and how – these services may interact with mobile services.

Therefore, it is quite different from designing fixed triple-play bundles.
-The speed and quality of fixed broadband at home may need to be compatible with consumers’ expectations from their mobile services – segmentation may not be straightforward.
-Pay-TV may need to extend to being delivered on mobile networks in order to become a truly converged experience
-Similarly, fixed voice services may require different design priorities when they are provided alongside mobile voice.

Pricing has, to date, been the most significant factor to consider when designing converged bundles (due to these bundles’ frequent association with discounts, and operators’ wariness towards related potential revenue erosion). However, we believe that operators should pay equal attention to the development of truly converged user experiences, especially for video and voice. This is necessary to move beyond competition based solely on price, and to turn converged bundles into sources of differentiation that are more than the sum of their parts, which more directly supports a move away from price competition.

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