Bundling Strategies - Double, Triple, Quadruple Play

Table of Contents

Executive Summary

Introduction

1. Panorama of bundle offerings in Europe, Asia and the USA

• 1.1. Introduction
• 1.2. Typology of bundles of services: broad and deep ranges
• 1.3. Panorama of bundles offering
• 1.4. Bundles based on a key service
  • 1.4.1. Bundles based on Internet access
  • 1.4.2. Voice-based bundles
  • 1.4.3. TV/video-related bundles
• 1.5. Bundles incorporating different types of services
  • 1.5.1. Double play offerings
  • 1.5.2. Triple play bundles
• 1.6. Identification of services marketed independently

2. Detailled players strategies

• 2.1. Auna
• 2.2. BT
• 2.3. Cegetel
• 2.4. Comcast
• 2.5. Fastweb
• 2.6. France Telecom
• 2.7. Free
• 2.8. Hanaro
• 2.9. NTT East
• 2.10. Ono
• 2.11. Plala Networks
• 2.12. SBC
• 2.13. Skylife
• 2.14. Telecom Italia
• 2.15. Telefonica de Espana
• 2.16. Telewest
• 2.17. Time Warner Cable
• 2.18. Tiscali
• 2.19. Verizon
• 2.20. Yahoo! Japan

3. Factors determining bundle strategy

• 3.1. Environmental factors
  • 3.1.1. Competitive context
  • 3.1.2. Structure of demand
  • 3.1.3. Technological background
  • 3.1.4. Regulatory framework
• 3.2. Operators' market objectives

4. Analysis of operators' marketing mix

• 4.1. Offering strategy: what are the arbitrages between broad and in-depth ranges?
  • 4.1.1. Strategy of combining services based on a basic brick service: the in-depth range option
  • 4.1.2. Triple and quadruple play strategy: the choice of a broad range
  • 4.1.3. Quadruple play strategy
  • 4.1.4. Arbitrage between deep and broad ranges
  • 4.1.5. Range of bundles
• 4.2. Pricing strategy: what are the pricing choices related to bundle offerings?
  • 4.2.1. Average prices charged by operators for the three basic services: Internet access, telephony and TV
  • 4.2.2. Prices charged for triple play bundle offerings
  • 4.2.3. Level of discount on bundle offerings
  • 4.2.4. Special offers
• 4.3. Advertising strategy
  • 4.3.1. How transparent is the bundle offering in the service range?
  • 4.3.2. Advertising
  • 4.3.3. Distribution
• 4.4. Quantifiable results of the bundle strategy
  • 4.4.1. The case of Telewest
  • 4.4.2. Increase in ARPU
  • 4.4.3. Increase in margins
  • 4.4.4. Rate of subscription to a multi-play offering
• 4.5. Typical service range strategies
• 4.6. Stakes and challenges

IDATE presentation

DigiWorld Catalogue 2005

List of tables

• Table 1: Pictograms related to each type of range
• Table 2: Bundles of services in deep ranges
• Table 3: Bundles of service in broad ranges
• Table 4: Pictograms related to each type of range
• Table 5: Deepness of range for services related to Internet access, voice over IP and TV
• Table 6: Range of services offered by operators (bundled or not)
• Table 7: Positioning of players analysed in access related bundles
• Table 8: Positioning of players analysed in voice-related bundles
• Table 9: Positioning of players analysed with regard to TV and video
• Table 10: Positioning of players analysed in double play bundles
• Table 11: Double play offerings of voice over IP combined with Internet access
• Table 12: Positioning of players analysed in triple play bundles
• Table 13: Quadruple play offers
• Table 14: Typology of non-bundled services available in the consumer market
• Table 15: Pricing of Auna bundles in EUR
• Table 16: The ComCast offering
• Table 17: Discount on Comcast' s bundled offerings
• Table 18: Fastweb VoIP prices (cts EUR/min)
• Table 19: Fastweb Internet access prices (cts EUR/min)
• Table 20: TPS pricing via France Telecom' s MaLigne TV (EUR/month)
• Table 21: CanalSat pricing via France Telecom' s MaLigne TV (EUR/month)
• Table 22: Canal+ Le bouquet pricing via France Telecom' s MaLigne TV (EUR/month)
• Table 23: Price of France Telecom' s Internet + TPS bundle (EUR/month)
• Table 24: Pricing of France Telecom' s Internet + CanalSat bundle (EUR/month)
• Table 25: Pricing of France Telecom' s Internet + Canal+ Le bouquet bundle (EUR/month)
• Table 26: Pricing of France Telecom' s Internet + video telephony offering
• Table 27: Level of discount on double play TPS offerings + Internet access
• Table 28: Hanaro' s Internet access offering
• Table 29: Double Play Hanaro bundle: simple access + VoIP (Krw)
• Table 30: Double Play Hanaro bundle: multiple access + VoIP (Krw)
• Table 31: Double Play Hanaro bundle: access + Wi-Fi + VoIP (Krw)
• Table 32: Double Play Hanaro bundle: Internet access + Wi-Fi access on hot-spots + VoIP (Krw)
• Table 33: Triple Play Hanaro bundle with satellite TV (SkyLife) (Krw)
• Table 34: SkyLife prices (Krw)
• Table 35: Triple Play Hanaro bundle with cable TV (in selected regions) (Krw)
• Table 36: Access related services offered by ONO (EUR)
• Table 37: Range of ONO bundles (EUR)
• Table 38: Pricing comparison of ONO' s bundled and separate offerings
• Table 39: Plala' s TV/VOD offering
• Table 40: Double Play FTTH access + VoIP (JPY)
• Table 41: Double play FTTH access + TV (JPY)
• Table 42: Triple play (JPY)
• Table 43: The SBC services offering
• Table 44: Total discount on SBC' s bundled offerings
• Table 45: Pricing of Internet services by SkyLife (KrW)
• Table 46: Pricing of SkyLife' s TV offerings (KrW)
• Table 47: Comparison bundled offers/separate offers
• Table 48: “SKYHD ELECTROMENAGER” bundle
• Table 49: “4 Star” Services associated with telephony
• Table 50: Telefonica' s Internet access offering
• Table 51: Prices for the Imagenio offering
• Table 52: Trends in penetration rates of triple play and ARPU levels related to the Telewest offering
• Table 53: VoIP prices without subscription
• Table 54: Tiscali international development
• Table 55: Verizon' s range of bundles
• Table 56: Total discount on Verizon' s bundle offerings
• Table 57: Pricing of Yahoo! Japan' s ADSL Internet access service
• Table 58: Structure of Yahoo! Japan' s TV/VOD offering
• Table 59: Market share of operators in the Internet access market
• Table 60: Telecommunication services most frequently used by households
• Table 61: Number of services per household from a single provider
• Table 62: Forecast number of homes with fibre connections (FTTP and FTTN)
• Table 63: Bandwidth capacities offered by some of the main broadband Internet access
• providers in Europe, Asia and the USA (May 2005)*
• Table 64: Classification of major paying optional services related to access on offer
• Table 65: The range of convenience services offered to VoIP subscribers
• Table 66: Positioning of the players analysed in VOD and PPV services
• Table 67: Partnership agreements set up with U.S. players in the framework of their
• quadruple play offering
• Table 68: Positioning of players according to the bundle range
• Table 69: Details of discounts made on bundle offerings
• Table 70: Levels of triple play distribution to new clients by distribution channel at Telewest
• Table 71: Forms of sale and distribution channels preferred by operators
• Table 72: Trends in Telewest' s turnover and net results between 2000 and 2004
• Table 73: Trends in the number of Telewest clients subscribing to a bundle offering between
• 2002 and 2004
• Table 74: Trends in the ARPU of Telewest subscribers for the year 2004 and Q1 2005
• Table 75: A broad and deep range of bundles to win the loyalty of a large subscriber
• base: incumbents facing challenges like France Telecom
• Table 76: Basic bundles to stimulate broadband access demand: the incumbent operator
• in a dominant position like Telefonica
• Table 77: Low cost bundle to win market share: new entrant like Free
• Table 78: Services oriented bundle to increase ARPU: new entrant like Tiscali
• Table 79: A broad range to extend its positioning to new market segments: a cable operator
• like Time Warner Cable
• Table 80: Quadruple play to attract and win customer loyalty: U.S. RBOCs
• Table 81: Typical Bundling strategies

List of figures

• Figure 1: Presentation of the Auna range
• Figure 2: Extension of Telefonica' s range of services
• Figure 3: Share of Telewest subscribers that has subscribed to a “triple play” offering
• Figure 4: Trends in the number of broadband subscribers since 2001
• Figure 5: Competitive structure of the broadband access market (mid-2004)
• Figure 6: Positioning of bundles in operators' strategies
• Figure 7: Scope of range for paying services related to access, voice over IP and TV
• Figure 8: Trends in the positioning of the various players in terms of the service offering
• Figure 9: Positioning of players according to their broad range strategy
• Figure 10: Positioning of the players analysed according to the depth and broadness of their service ranges
• Figure 11: Monthly subscriptions charged by players for broadband Internet access (in EUR)
• Figure 12: Monthly subscriptions charged by players for IP telephony (in EUR)
• Figure 13: Monthly subscriptions charged by players for TV/video services (in EUR)
• Figure 14: Monthly subscriptions charged by players for triple play bundles (in EUR)
• Figure 15: Average discount according to the operator
• Figure 16: Comparison between the discounts on basic and high end of the range bundles
• Figure 17: Transparency of bundle offerings according to the scope of the range
• Figure 18: Trends in the share of Telewest double and/ triple play subscribers between 2002 and 2004
• Figure 19: Share of Telewest clients with a subscription to a triple play offering
• Figure 20: Trends in Telewest' s ARPU between 2000 and 2004
• Figure 21: Trends in the monthly churn rate of Telewest subscribers between Q1 2004 and
• Q1 2005
• Figure 22: Trends in average revenues per subscriber for COMCAST in New England