Mobile networks that don’t offer quad play services are in danger of losing customers to broadband providers offering cut-price mobile services for multi play customers. That’s the warning from telecoms and communications analyst CCS Insight, following its latest survey of the multi play market.
The survey found that over 65% of multi play consumers value their broadband above their mobile phone, pay-TV service and fixed-line phone. CCS Insight contacted 1,000 decision-makers in UK households, responsible for buying media and telecom services. Around a third of respondents were already paying for a bundle of services, while a further 40% said they would consider signing up for one, citing better value and convenience as the key drivers.
CCS Insight warned that the findings show that broadband operators are in pole position to dominate the multi play market, and underline the need for mobile operators to join the multi play market or face losing market share to broadband providers.
Pointing to BT’s move to buy EE, and Sky’s MVNO venture with O2, Paolo Pescatore, director of multi play and media at CCS Insight, said: ‘Companies are scared of missing out on a huge opportunity – it's little wonder we're seeing a frenzy of M&A activity as leading players scramble to secure these assets.’
However, he warned: ‘Our research indicates that new entrants in the broadband market face a significant challenge in winning customers, Networks selling only mobile telephone services must take careful notice of this trend and should quickly offer their customers a broadband product to avoid being left behind. If they don't move quickly they could haemorrhage customers to broadband providers offering a competitively priced mobile service within their bundles.’