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Analysis & Go-to-market, 2014
How have operators introduced mobile-fixed convergent quad-play in Europe’s most advanced markets France, Spain, Portugal – and in emerging quad markets like Belgium, the Netherlands, the UK and Germany? How has competition reacted?
Using facts: How have these quad introductions affected market share, churn, acquisition & retention cost, demand for mobile, fibre-speed broadband and TV – and revenue and margin? Which defensive actions can non-convergent operators take?
Which factors can be attributed to effective take-up of quad play? Market share, fibre deployment and homepass, TV offers, exclusive content – or is it just about bundling discounts? What discount levels are we talking about?
Based on international facts and best practice, what would tefficient recommend? Taking local conditions, operator strategy and market position into account.
Commissioned by two operators.
The reporting of Telefónica, PT and Orange show that quad-play is a hit in Spain, Portugal and France. Vodafone used 14,9 billion EUR to acquire cablecos in Germany and Spain – to enable quad.
Operators need to be realistic about the positives quad-play can bring and use facts to spot best practice. tefficient’s framework provides a great start if entering quad – or facing competition that do.
At tefficient, we’ve built a comprehensive before/after analysis framework of the results operators have achieved when transforming their offers from single-service to quad-play.
There are many indications that quad-play is about to become the new European standard: Telekom will go quad-play in Germany during 2014; Vodafone has acquired Kabel Deutschland and Ono to go beyond mobile-only; TeliaSonera reorganised 1 April to converge fixed and mobile on a national basis.
Quad is propagating over Europe with south-westerly winds. The map above shows the wind direction: From Portugal, Spain and France towards Central and North Europe.
The first step towards true quad is often what we call light quad – a discount that a customer gets if he or she adds mobile to triple-play. In this case, it’s typically not very prominent in operator’s marketing, there’s typically no product brand name, and far from the straight-forward pitch of true quad operators.
The current position of European operators – who have quad capability – is seen in our quad pyramid above. The arrows indicate operators that are seen to take action to move upwards.
Through our before/after analysis, we’ve spotted several very interesting outcomes – best as well as worst practices. These can be used to either prepare your own journey into quad – or understand how to best defend against quad-capable competitors.
Triggered by Vodafone’s 7,7 BEUR cash offer for cableco Kabel Deutschland and the emphasis Vodafone has put on communicating the importance of being able to offer quad-play (fixed broadband, TV, voice and mobile) in the German market, the question has to be asked: Isquad-play a competitive necessity?
This analysis compares data from operators that have taken the quad-play road: Orange France, SFR, Movistar Spain, Virgin Media, Swisscom, TDC and Orange Poland.
Their take-up might be impressive – driven by significant discounts – but what effect has it had on customer loyalty?
Download analysis: tefficient public industry analysis 9 2013 Multi-play