Quad-play bundling slow to take off in Asia Pacific

Action still restricted to fixed services

Full quad-play bundling will be slow to take off in the Asia Pacific region with the real action restricted to fixed services in the near term.

Ovum research director, David Kennedy, said fixed and mobile businesses are still managed separately by many operations in the region, and the move to customer-focussed structures is slower than other more advanced markets like Europe.

"This is associated with the relatively low level of bundling compared to Europe", Kennedy added.

Apart from the split between fixed and mobile marketing, Ovum also identified differences between advanced economies and emerging economies in the region.

"In advanced Asia-Pacific markets the most common strategic driver for offering service bundles is concern about customer retention," he said.

"Fixed operator strategy is to retain voice customers, and upsell broadband and content to them."

As a result fixed-to-mobile substitution (FMS) looms large as a threat, leading to a prevalence of fixed dual- and triple-play bundling.

Kennedy said this strategy is common among incumbents in advanced markets.

In contrast, in emerging markets the broadband and content markets are immature but fast growing, and bundling has not yet become important.

"True quad-play remains relatively unpopular in the region and we expect this to remain the case for some time", he said.

Based on Ovum's research, Asia-Pacific bundling has unique features, as compared to other regions.

In contrast to Europe, fixed telephony rather than broadband is often the central product of bundled offers by telecommunications operators, especially incumbents.

Kennedy said bundled offers are often 'stacks' with voice at the bottom, a broadband option on top and a TV offer on top of broadband.

"Voice still drives a lot of customer decision-making, though this may change in the future as cheap VoIP becomes standard and the consumer focus shifts towards broadband and content," he said.

"Overall, bundling is less common and intense in Asia-Pacific than it is in Europe, due to lower competitive pressure from resale and cable-based rivals."

Kennedy said regulatory restrictions on bundling are still important, especially in some advanced markets.

Meanwhile, the newly elected Labor government's broadband plans are in disarray following Telstra's announcement it will not play ball and support the government's joint network plans.

The Minister for Broadband, Communications and the Digital Economy, Stephen Conroy, plans to jointly build and integrate the OPEL rural WiMax plan with its own national Fibre-to-the-Node (FttN) network.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sandra Rossi

Computerworld
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?