The triple play model has grown in popularity over the past
few years, as cable companies and telcos seek to further
monetize existing customer relationships and diversify revenue
streams. In this report, we analyze the value of the
multi-play proposition, with an emphasis on a number of key
questions, most notably, is triple play indispensable?
The answer is not as straightforward as it may seem. Through
analytical case studies of existing triple play bundles, we
examine the key ingredients in creating successful triple play
models.We focus on pricing, discounting, content, the
strategic approach to triple play, as well as key performance
indicators and bottom line impact. We make the following key
arguments (supported by data and case studies), among others:
In our view, the concept of subscriber will
increasingly become insignificant as an indicator of carrier
operational performance. What we see is the emergence of the
“revenue generating unit” (RGU), a concept that focuses on the
number of core applications sold to an individual subscriber.
Triple play bundles do not compensate for
deficient individual packages. One of the key lessons of our
research and case studies is that triple play bundles (even
when discounted) cannot hide the deficiencies of individual
components in a competitive market.
In the triple play stakes, incumbent telcos are
mistakenly focused on protecting the (wrong) core.
Consequently, cable carriers (and a number of alternative
telcos) have taken a strong lead in service bundling. In a
context in which VoIP adoption is accelerating, such
approaches to triple play are out of step with market
Quadruple play is a fallacy. The concept of
quadruple play assumes that a single carrier would be offering
four applications (fixed voice, broadband internet access, Pay
TV/Video, and mobile) through a single, bundled subscription.
A number of points make it unlikely that this offering will be
rapidly picked up over the medium term. First, triple play is
We do not believe that discounts are a
prerequisite to successful bundled triple play; just as (if
not more) powerful are service differentiation and a segmented
approach to pricing.
Fixed Operators: Assess the financial implications and
long-term positioning strategies to develop a successful
triple play offering. The detailed analysis of IPTV, the final
piece in the telco triple play, includes assessments of
technology, content and user expectations. The in depth case
studies will help you assess competition and indentify telco
triple play best practices. Use the included market forecasts
to quantify the market opportunity.
Cable Companies: Through case study analysis and market
forecasts, identify best practices to drive penetration of
triple play subscribers and mitigate competitive risk from
fixed telcos. Use the included market forecasts to quantify
the market opportunity.
Vendors: Position your solutions to triple play service
providers through a clear assessment of the impact of triple
play solutions on their operational performance.
Investors: This report will help you assess the short
and long-term financial prospects for triple play providers by
determining the characteristics of the successful and
profitable carrier as well as market conditions.
Mobile Operators: Assess the threat of future
multi-play providers like NTL using mobile voice in their
bundles. Develop your strategy now to minimize the risk of
churn to telcos and cablecos offering mobile voice as a key
component of their strategy.
Case Studies Included