60 second intro
In recent news the major Telcos are rolling out new partnerships with media content providers. With competition these days highly competitive, the national carriers are choosing to value add to retain their subscribers. Read on in the following article to learn more.
- Quad play services on offer from the Telcos provide Aussie consumers with discounted bundle choices, but is this really a good deal?
- With the highly competitive market in Australia, the Telcos have found that offering bundled services helps them to reduce customer churn, while at the same time increasing their revenues.
- Smartphones and tablet devices are changing the way in which people are choosing to consume their media.
An introduction to quad play
Quad play is when a Telco or service provider offers value added services in a bundle to their subscribers.
It makes a lot of sense for the national carriers to do this because it’s much easier to up-sell additional services, than to gain a new customer. Quad play lowers prices but at the same time encourages people to take out more services from one provider and to churn less. For consumers who want their fixed line phone service, home broadband and TV media on demand, all from the one provider, quad play bundles offer a pretty good deal.
What is quad play?
The move to quad play is strategically derived from a belief that it’s all just IP/data in the end and a Telco is the natural company to offer it to you. In Australia competition in the industry is highly competitive, with the Telcos needing to provide increased value added services to retain their existing customers. From a Telco perspective, quad play aims to lower the risk of customer churn, by locking subscribers in to bundled services.
The more services which users are subscribed to from one Telco provider, the more difficult it becomes for them to switch away. From a consumers perspective, having all of their required services provided by one company, makes for simpler and more convenient billing. While quad play is slowly beginning to increase in popularity in Australia, for the majority of the population it’s not that big of a deal. Still, for users which subscribe to quad play bundled services, steep discounting by the Telcos results in quality deals for subscribers.
What people love about quad play
Aussies which subscribe to a Telco and take out a quad play package, often get better deals than if they were to subscribe to each service individually. With the emergence of MVNOs in the Australian marketplace, fantastic value added deals are available all the time.
Especially when it comes to SIM only prepaid plans.
Some of the best value deals are from MVNOs with their prepaid plans, with company’s such as OVO Mobile providing exclusive access to Australian content like Drag Racing and Australian Gymnastics. It’s value added content such as this from the MVNOs, which are leading to more consumers moving away from the national carriers.
The dark side of quad play – what they don’t want you to know
While the concept of quad play is attractive, the questions still remains, do customers really want it? There’s going to have to be a big marketing push by the Telcos, to convince people that they really want four services from a single provider.
It’s the same as the supermarkets where we changed from going to the butchers and greengrocers, to a single place for all of our shopping needs. But did this change occur because it was more convenient for us, or was it due to the large advertising budgets of the big name supermarkets?
The concept of bundling services such as fixed line, TV and broadband, comes from the traditional ways of Telco thinking. It’s a business model designed on locking customers into services, rather than giving them new and useful benefits. Quad play services are becoming an increasing prevalent feature in the Australian market place. The bundled service price is often cheaper when compared to stand alone services, which benefits operators, but do customers really need all their services from one provider?
What Quad play is
Quad play encourages laziness and in that way precludes shopping around for the best deals. When you have one Telco providing you with all of your services, such as fixed line, broadband and TV, it does make life convenient. But, as it is often the case, better research on each component is likely to give you a better deal overall.
Comparing each service on their own, lets you form a rational view of which services make sense for you. Not all people require all of the bundled quad play services and by shopping around for the best deal for your personal circumstances, this will ensure that you do indeed get the best deal. This is rapidly becoming the very thin end of the wedge.
With more and more data being allocated on broadband and mobile plans, and our buying habits changing, we can expect every Australian company to be more aggressively cross selling and up-selling in the future.
Quad play makes a lot of sense for the phone companies, but does it make sense for their customers? By locking subscribers into quad play bundled packages, the Telcos have a strong chance of increasing their revenues while reducing churn. But pressure from the market and shareholders is causing mergers left, right and center, all over the world.
It’s caused Telcos such as Optus to be left behind and forced to adapt to the market, while at the same time having to rapidly play catchup. With company’s such as TPG signing partnership deals with Vodafone and Telstra signing deals with content provider Netflix, quad play’s popularity is set to increase in Australia.