Where Are Multi-play Bundles Making The Biggest Impact?
As a CSP, you may already know that organizations who invest in multi-play bundles tend to see the biggest impact in reducing customer churn and increasing customer loyalty.
But do you know where it’s making the biggest impact in terms of customer groups?
A study we conducted with Ovum revealed that multi-play bundling makes the biggest impact in the mobile arena specifically.
There are several reasons for this:
- Churn dynamics in mobile services are often substantially different from fixed voice, broadband or TV services. This is because mobile services, unlike broadband and TV subscriptions (which are shared), are usually bought and used on a personal basis.
- Mobile churn is often related to frequency of handset upgrades. In addition, there is still a large proportion of mobile customers that are on prepaid plans, even in many mature markets, whereas many wireline services are typically postpaid subscriptions.
- Most of the customers who have not yet signed up for multi-play are mobile customers, since they’re still on prepaid plans. The multi-play customers that do exist usually purchase bundles of voice, broadband and TV services. Thus, to increase customer loyalty among mobile customers, CSPs should offer them quad-play bundles of wireline (voice and broadband), TV and mobile services.
In the study we published, Ovum explains why the above facts also indicate that multi-play ARPU is growing in the mobile sector, in addition to customer loyalty.
About the author: Alon Bar is a product marketing manager at Amdocs, with over 16 years of experience in the communications IT industry. He is responsible for creating awareness, positioning and bringing to market Amdocs’ portfolio solutions. This role includes defining the business strategy and direction and encompasses new offering development, innovative technology and market insight.