Measuring the effectiveness of bundles: a European perspective

Publication Date	January 2008
Publisher	Ovum
Product Type	Report
Pages	25
ISBN Number	not applicable
Product Code	OVM00465

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Summary

Much has been written about the benefits to service providers of offering bundles of multiple services. In our report Triple play and service bundling: strategies in the European market, published in June 2007, we analysed the goals that service bundling can address and the different types of bundles implemented by European players. Senior analysts Steven Hartley and Marta Munoz Mendez-Villamil follow up from that research and analyse the effectiveness that such bundles have had on European operators' performance to date.

Content

Executive summary
In a nutshell
Key messages
Bundles and x-play: a stopover on the road to convergence
- Differentiating between bundles and x-play
- The destination is convergence
The roles of service bundling in corporate strategy
Corporate strategy goals addressed by service bundling
New metrics for a new era
- Current performance measures are insufficient
- Producing new metrics is not an easy task
Bundles: no longer a differentiator
- Bundles are no longer unique in mature markets
- Bundle comparability: an opportunity
- Churn one, churn all
Bundles and x-play: the financial impact
- Are bundles a panacea for declining revenue growth? The silence is deafening
- So what financial data is available and what can it tell us about bundles?
- Bundle discounts are counterproductive to margins
- Bundles are not a cost-saving measure
- X-play adds incremental revenues
Future bundle and x-play strategies
- Why bother with bundles?
- Filling your basket at the infotainment supermarket
Table of figures
- Figure 1 Convergence roadmap
- Table 1 New metrics needed for a converging sector
- Table 2 Examples of European operators' product bundles
- Figure 2 Telefonica's PSTN subscribers in relation to launches of bundle offerings, 1Q05-3Q07
- Figure 3 Western European incumbents' domestic fixed revenues, 2005-2007
- Figure 4 Average quarter-on-quarter domestic fixed revenue growth* for Western European incumbents, 2005-2007
- Figure 5 Average ARPU for European incumbents, 2005-2007
- Figure 6 Average quarter-on-quarter voice and broadband ARPU growth for Western European incumbents, 2005-2007
- Figure 7 Virgin Media bundle versus unbundled price
- Figure 8 Virgin Media consumer cable ARPU and customers, 4Q05-3Q07
- Figure 9 Costs and savings associated with bundle offerings
- Figure 10 Broadband ARPU growth by service provider in France
- Figure 11 The x-play service-oriented shopping basket