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Quad-play bundling gaining traction in Europe, mobile becoming important

Quarterly Television Monitoring
Published: 2014-01-03

Bundled service has been a permanent fixture on most telcos’ standard offers and incumbents, especially those who offer all communication services (fixed line, Internet, TV and mobile), stand to benefit from offering converged services. Incumbents have been relying on their bundled offers to mitigate fixed line loss and generally, subscriber churn brought about by the stiff competition in their own markets.

Pay television has been at the forefront of the bundling successes of some leading European telcos and has been the main driver for multiplay adoption. More recently, also mobile service has been increasingly becoming an important component of bundled offers thanks to the popularity of tablets and smartphones. Moreover, the deployment of LTE and popularity of over-the-top (OTT) mobile messaging (e.g. Skype, Viber and WhatsApp) as well as OTT video streaming apps have further made mobile services more ingrained in everyone’s daily life.

Indeed, quad-play demand has been growing and telcos are adapting to the change. Portugal Telecom recently rebranded TMN mobile to Meo – a brand already used by its fixed line, broadband and TV services – to further focus its marketing strategy to multiplay. Additionally, the recent Kabel Deutschland acquisition by Vodafone is a strategic move so the latter could position itself as a quad-play player. After the success of KPN’s quad-play offer under the “KPN Compleet” launched January 2013, the Dutch incumbent plans to offer quad-play to its youth brand called Hi.

Incumbents have indeed started to see some success in quad-play bundling. Belgacom, for instance, have reported that a quarter or over 323 000 of its 1.3m multiplay customers are subscribed to its quad-play packs. Swisscom’s quad-play service continues to gain momentum and posted 317 000 subscribers in 3Q13. Finally, and perhaps one of the most successful is Telefonica’s Movistar Fusion quad-play service that has reached 2.6m in 3Q13.

Published: 2014-01-03

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