During the last decade, fixed-mobile convergence – FMC for short – has come to dominate how connectivity and entertainment are sold to households in European markets like Spain, France, Portugal, Belgium and the Netherlands.
In Spain, around three quarters of the households currently subscribe to an FMC plan covering at least fixed broadband and one or multiple mobile subscriptions. Often TV or other entertainment services are included too.
Initially FMC was sold with massive discounts and the base grew quickly as it was a no-brainer not to buy everything from the same operator. Churn levels were improved dramatically too when a churn decision no longer just affected one service for one household member, but many different services consumed by many different people. [Some find it easier to negotiate with an operator than with members of the family].
In later years, FMC ARPU increased much, driven by more content (and more expensive content such as football) in the mix. Eventually, the operator thirst for higher and higher ARPU might have been the start of a negative base trend for FMC. In the graph below, we show the FMC net adds for Movistar (Telefónica Spain) since the launch of its Fusión FMC product.
How have operators introduced fixed-mobile convergent plans in Europe’s most advanced markets France, Spain, Portugal, Belgium, Switzerland, the Netherlands – and in emerging FMC markets like the UK and Sweden? How – and how quickly – did competition react?
Using facts: What is the take-up of these FMC plans? How have the FMC introductions affected mobile and fixed market share, customer churn, acquisition & retention cost, demand for fibre and TV – and revenue and margin?
How do you avoid making FMC a discount-centric thing? How have the best FMC propositions been put together and how have they been marketed? Is there a way to leverage content and exclusivity?
Mobile operators are abandoning the previously predominant model to subsidize handsets and to, in return, lock customers in on long contracts with elevated service fees.
The death of the model should be mourned by no one since end-users have been given choice and flexibility through a multitude of non-binding, cheaper and flexible service options with generous – or even unlimited – allowances. Operators have seen customer churn decrease as end-users hold onto their handsets longer. As a direct consequence, EBITDA margins have increased.
Also the 2017 version of Nexterday North was a true ‘anti-seminar’ with futuristic and insightful speakers in a great, sometimes quirky, mix. May Comptel‘s spirit thrive also now that it is a part of Nokia.
This year, tefficient held a keynote presentation focused on bundles and the effect on churn.
Nonstop Retention® benchmark: Calculating and comparing the Nonstop Retention Index for mobile brands (MNOs, sub-brands and main MVNOs) in one specific major European market. Identifying best practice and showing current trends. Recommending propositions and actions to improve customer loyalty per brand.
Nexterday North 2016 was an as fantastic experience as the first, inaugural, anti-seminar in 2015. Once again, Comptel managed to bring 550 thinkers and doers from around the world to Helsinki and create great buzz around it.
Analysis of the mobile market in a specific country: Development of market shares, subscription tiers, churn, offerings, pricing, data usage, revenue, ARPU, margin, network coverage and CAPEX for all operators.
Special focus on the development of mobile data monetisation and mobile TV/video over time.
Less than two weeks ago, Telenet, Liberty Global’s affiliate in Belgium, got a green light from the European Commission to buy the mobile operator BASE from KPN. So already before today, Liberty took a major step in the mobile direction.
Mid November last year, T-Mobile USA launched its 10th uncarrier initiative, Binge On. It has been the most controversial uncarrier launch so far.
Why? Binge On zero-rates commercial video services – so that T-Mobile customers can watch as much as they like without emptying their data bucket. The trade-off? Video streams are slowed down to about 1.5 Mbit/s which means that image quality suffers – which is visible, but perhaps not on smaller screens like smartphones and tablets. Continue reading 34 petabytes of zero-rated video streamed since launch of Binge On→