The challenges and opportunities of competing in the bundled-services market

The challenges and opportunities of competing in the bundled-services market

The recent bundled-service packages launched in the UK by Carphone Warehouse (CPW) and Orange are the first to bundle a mobile voice service with ‘free’ broadband access. Until recently, consumers have had to purchase mobile and broadband services separately, but these new bundles may change this trend. The potential of service bundles is demonstrated by the CPW bundle, which captured 340,000 customers within eight weeks.

Competition will get stronger in an increasingly converged market, as more operators strive to offer bundled services. Service providers must overcome the challenges of providing bundled-service packages, such as complex billing, before they can achieve the potential rewards of gaining new users and retaining existing subscribers. Here we examine the challenges and opportunities that face operators deciding to offer bundled products.

Table of contents

A converging market

Different approaches

Challenges and opportunities of providing convergent bundles

Case study: Orange

Drawbacks of Orange’s bundle
Advantages of Orange’s bundle

Case study: Carphone Warehouse

Current obstacles for CPW
Potential benefits for CPW

Savings only for the right consumers

What is on the horizon?