Maximising ARPU through triple-play services

Abstract

From an ARPU point of view, the benefits of triple-play services are obvious: increase the number of paid services per customer - increase the revenue that customer generates. However, getting the right mix of services is important if ARPU is to be truly maximised, and not all players will have the capability to achieve the optimum balance.

In order to maximise ARPU, the triple-play mix needs to favour the largest individual revenue opportunity within the service bundle, and usually this is pay-TV. The message for telcos is therefore clear - either become a TV/video-focused company, or look beyond triple play for new revenue opportunities. Both prospects provide a significant challenge to operators, but the alternative looks to be a slow decline in consumer ARPU and thus revenues.

Table of Contents

Executive summary
In a nutshell
Ovum view
Introducing the new consumer ARPU dashboard
How to maximise triple-play services
The benefits of triple-play for ARPU
3 is the magic number
New players start with triple play from day one
TV operators have a head start
A switch in focus for telco operators?
But what comes after triple-play?
Continuing to grow TV revenues will be difficult
A shift in revenue soruce?





List of Figures
Figure 1: Triple-play and ARPU positioning grid
Figure 2: Growing revenues beyond triple-play service uptake
Figure 3: Belgacom’s individual segment ARPU for voice, broadband and TV
Figure 4: Voice, broadband and TV penetration across Belgacom’s customer base
Figure 5: Belgacom’s overall consumer ARPU split by service type
Figure 6: TV operators have the advantage
Figure 7: Comcast’s TV subscription trends
Figure 8: Share of services sold by key players