Not all markets are ready for a quadruple-play strategy, warns analyst

Triple-play bundles of TV, voice and broadband services have proved successful in increasing operators' market share in France, the UK, the US and other countries, according to new research.

However, the report from Analysys noted that quadruple-play bundles which add mobile phone services to the mix are as yet unproven.

Analysys said that triple-play packages have enabled US cable operators to double average revenue per user and halve churn.

"There is plenty of evidence that TV-based triple-play bundles work," said report author Margaret Hopkins.

"But quadruple-play packages suffer from the mismatch between the elements' target markets. TV services are targeted towards families, but mobile phone services are aimed towards individuals.

"Incumbent operators have used quadruple-play services as a defence against competitors' TV-based triple-play bundles, but without noticeable success."

Hopkins noted that not all markets are ready for a quadruple-play strategy as multi-play bundles tend to be introduced in maturing markets where there are fewer opportunities for innovation in single services.

However, the analyst believes that quadruple-play packages are "inevitable" despite the lack of certainty about their success, and that residential broadband and pay-TV operators must plan now to be ready for their introduction.