Released on = August 2, 2006, 6:15 am

Press Release Author = Visiongain

Industry = Telecommunications

Press Release Summary = While service providers are hoping to build on their success
with two-play by deploying triple and quadruple play packages.

Press Release Body = San Francisco, CA and London, UK; 27 July 2006: A new
visiongain report warns that while service providers are hoping to build on their
success with two-play by deploying triple and quadruple play packages, this approach
will not work for all providers. The report, "Quadruple play and service bundling
strategies: 2006-2011," argues that bundling has the potential to revive the
fortunes of service providers only if they develop packages that are in tune with
their market segmentations.
Visiongain has found wide regional disparities between the number of households
subscribing to bundled services, and the evolution of triple and quadruple play is
going to differ drastically by region.
For instance, almost half of all North American households subscribed to some type
of bundled service in 2005. Two-play services accounted for 40% of all households,
while those subscribing to triple play accounted for only 9.5% and a mere 0.4% of
all households subscribed to quadruple play services. However, competitive pressures
will accelerate the uptake of triple and quadruple play from 2008 onwards.
This contrasts sharply with visiongain's estimates of triple and quadruple play
uptake in developing markets. In the Middle East and Africa, for example, only 0.3
million households will be subscribing to triple play by 2009, and only 0.1 million
to quadruple play. This compares to over 96 million households that will still be
without a service bundle.
Service providers are increasingly looking at bundling as a means of reducing churn
and increasing revenue. However, these service providers also face significant
hurdles along the way.
"Bundles that include IPTV are not suited to all markets and service providers
should focus on adding value to their existing services before embarking on
significant expenses that may not yield the expected financial rewards," says
visiongain analyst and the report's lead author Dr Jean-Pierre Aubertin.
"Our research suggests that quadruple play is going to be limited to affluent
countries and even then may only be marketable to select target groups. In
developing markets, we believe that emphasis should be placed on offering two-play
bundles and mobile services," adds Dr Aubertin.
"Bundling is the way forward for service providers if they develop packages that are
in tune with their market segmentations. They should not blindly follow others and
invest in technologies that have little chance of bringing a return on their
investment but carefully develop packages that meet their customers' needs.,"
concludes Dr Aubertin.
This 130-page report provides an analysis of the current triple and quadruple play
markets, including product offerings, pricing, strategies and business case
viability. It also explores regional opportunities for bundled services to
households as the market evolves.



ENDS

Notes for Editors
If you are interested in a more detailed overview of this report, including the
Executive Summary, charts and images, please send an email to
sara.peerun@visiongain.com or phone Sara on +44 (0) 20 7336 6100.


About visiongain


Visiongain is one of the fastest growing and most innovative independent media
companies in Europe. Based in London, UK, visiongain produces a host of
business-2-business conferences, newsletters, management reports and e-zines
focusing on the Telecoms, Pharmaceutical and Defence sectors. \'Visiongain has a
global client base, with offices in London and San Francisco.
Visiongain publishes reports produced by its in-house analysts, who are qualified
experts in their field. Visiongain has firmly established itself as the first
port-of-call for the business professional, who needs independent, high quality,
original material to rely and depend on.

For more information on visiongain, please visit the website:
www.visiongainintelligence.com


Web Site = http://www.visiongain.com

Contact Details = BSG House
226-236 City Road
London EC1V 2QY
Tel: 00442073366100