If it is a legacy carrier that has to substantially upgrade its network in order to provide triple-play services, the business model would be a high risk one depending on all the variables in the market they're in (demographics, price point, positioning, competition, etc).
If it is a new provider than can take advantage of the various wireless broadband spectrum available that offer reliable TV service, then it would be a better situation since the network would be purpose-built for triple / quad play from the ground up. Depending on the wireless spectrum the carrier gets licensed for, this network can be deployed to cover large areas at relatively low costs.
It is a viable business model for the company only when the customer sees value in the wireline telephony component. Companies which correctly packaged and priced various triple play offerings have been extremely successful in growing overall subscriber units (not just phone customers), revenue, ARPU and operating cashflow. But the trend is definitely shifting. In the growing world of cord cutting consumers, more and more customers simply don't use or see value in wireline service for personal, practical and economic reasons.
Because of this rapidly evolving trend, telecom companies are less able to spread the bundle discount across three products and will need to develop a new pricing solution that is attractive to cord cutting customers in the very near future. The ideal alternative will be for those MSOs who are able to leverage a wireless solution as a third element alternative to the triple play. Ultimatey, femtocells or some other similar disruptive technology could provide the longer term solution.http://hdmoviefair.com/
In summary, triple play offers are valuable tools to the business arsenal of the telecom industry, but wireline's days as a substantial driver of triple play consumer behavior are likely numbered.
If it is a legacy carrier that has to substantially upgrade its network in order to provide triple-play services, the business model would be a high risk one depending on all the variables in the market they're in (demographics, price point, positioning, competition, etc).
ReplyDeleteIf it is a new provider than can take advantage of the various wireless broadband spectrum available that offer reliable TV service, then it would be a better situation since the network would be purpose-built for triple / quad play from the ground up. Depending on the wireless spectrum the carrier gets licensed for, this network can be deployed to cover large areas at relatively low costs.
It is a viable business model for the company only when the customer sees value in the wireline telephony component. Companies which correctly packaged and priced various triple play offerings have been extremely successful in growing overall subscriber units (not just phone customers), revenue, ARPU and operating cashflow. But the trend is definitely shifting. In the growing world of cord cutting consumers, more and more customers simply don't use or see value in wireline service for personal, practical and economic reasons.
Because of this rapidly evolving trend, telecom companies are less able to spread the bundle discount across three products and will need to develop a new pricing solution that is attractive to cord cutting customers in the very near future. The ideal alternative will be for those MSOs who are able to leverage a wireless solution as a third element alternative to the triple play. Ultimatey, femtocells or some other similar disruptive technology could provide the longer term solution.http://hdmoviefair.com/
In summary, triple play offers are valuable tools to the business arsenal of the telecom industry, but wireline's days as a substantial driver of triple play consumer behavior are likely numbered.