Tariff Consultancy Ltd finds that triple play service providers are offering more flat rate services, more bundling and are increasingly resorting to headline promotional rates in order to gain subscribers – but are doing so at the risk of commoditising their service & brand.
A new research publication (available from the 28th April) of the Triple Play & FMC Journal finds that Triple Play service savings range from 9 per cent to 35 per cent when compared with stand alone telephony, broadband and TV offers. The average saving across the main operators in six main European countries (including France, Germany, Netherlands, Spain, Sweden & the UK) is now almost 23 per cent, an increase of almost 2 percentage points over the last three months.
Overall the savings to be had from triple play services appears to be increasing quarter on quarter. Providers are seeking to provide extra features – such as Video on Demand or additional TV channels – to protect an existing Triple Play price point.
Operators are still testing the market to find the ideal mix of services and are still fine tuning their offers, with Deutsche Telekom reducing the price points for their “Call & Surf Comfort” and “Entertain Comfort Plus” packages.
Both incumbent operators and alternative network providers are using headline promotions – typically of 3 months half-price – to encourage new subscribers to commit to longer term contracts of 18 or 24 month terms, and to avoid permanent discounting. But as these features are now becoming so widespread they are effectively becoming a form of extra price discount and are helping to lead the market price down.
“The consumer is being encouraged to concentrate on a headline price offer rather than find a provider which meets their needs,” commented Margrit Sessions, Managing Director of Tariff Consultancy Ltd. “We believe that many operators will find it more & more difficult to go down this road as margins are being eroded with increasing speed.”
Note to Editors:
About the Triple Play & FMC Journal
Published every 3 months, the Triple Play & FMC Journal provides a comprehensive overview of the main company results, sales figures, product launches, regulatory actions and price comparisons affecting Triple Play, Bundled services and Fixed Mobile Convergence products in Europe with news from operators all over the world. Each edition updates pricing from 16 European operators in 8 EU countries in order to illustrate the main tariff changes in each market. Further information is available on our website at www.telecomspricing.com
About Tariff Consultancy Ltd
The publisher of the Triple Play & FMC Journal, Tariff Consultancy Ltd provides a wide range of subscription based services, specialist research, consultancy and conference organisation on fixed and mobile telecoms pricing and commercial issues. Further information is on our website at: www.telecomspricing.com
Contact: T: +44 208 993 6861, M: +44 777 625 4827, E: firstname.lastname@example.org
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