Excerpt from "Convergence in Developed AsiaPacific: Operator Strategies Move beyond Bundling to VAS" by Asia Pacific Insider Report (August 2013)
Executive summary: Progressive broadband markets in Asia- Pacific move beyond basic bundling
Advanced broadband markets in parts of Asia-Pacific show high adoption of fiber, multiplay and 3G+, setting the stage for convergence. Operators are looking to take advantage of convergence to reduce churn and introduce new value-added services.
Cloud and multiscreen access are becoming standard elements of bundles, providing access to content across a wide plethora of devices.
Smart living provides a next
step beyond cloud and multiscreen VAS:
- Home hub device penetration is increasing, and provides a portal to a range of services;
- Healthcare, surveillance and home automation provide new revenue opportunities for established players.
The Convergence in Developed
Asia: Operator Strategies Move beyond Bundling Insider presents case studies on
Chunghwa, NTT, PCCW, SingTel, StarHub and Taiwan Mobile, and examines how these
different operators are approaching convergent offers.
Key findings
Developed markets in
Asia-Pacific, such as Australia, Hong Kong, Japan, South Korea, Singapore and
Taiwan, have some of the highest rates of broadband service penetration,
including for LTE, FTTB/H, household broadband and multiplay. Many operators in
these markets are therefore moving beyond bundling strategies in order to
develop new revenue streams.
Bundling has become a
fundamental part of all broadband operator propositions. Challenger operators
tend to offer very attractive discounts in order to expand their customer base,
while larger incumbents offer smaller discounts but highlight their reliable
high-speed networks and broader coverage and more often differentiate
themselves with value-added services. Furthermore, quadruple plays and the
addition of mobile services to bundles are also becoming more important, while
pricing and content strategies are being used to address specific market
segments to boost overall adoption.
Value-added services such as
cloud storage and multiscreen access are becoming standard components of
broadband bundles. Most operators include some volume of cloud storage as part
of their bundles, enabling different devices to access content. We believe that
more and more operators will start charging for cloud storage as demand for
data storage increases in line with multimedia usage.
Very advanced operators such
as PCCW and NTT are moving rapidly into the smart living space. This includes
services such as healthcare, surveillance and home automation. Personal health
monitoring devices are being used by NTT and PCCW to address the smart
healthcare opportunity, while Chunghwa and PCCW are pushing home hub devices to
increase their revenue opportunity and offer new types of services.
Smart living services are a
long-term opportunity requiring a commitment that will take time to provide a
return. As such it is not a priority opportunity for all operators to pursue,
particularly smaller challengers and operators planning to invest in markets
with different levels of development.
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