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The Mobile services in converged bundles: customer retention, service design and innovation

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Converged bundles have clear positive effects on customer retention, but their impact on revenue and subscriber growth has been mixed. In this report, we identify best practices that operators can use for mobile services when launching and promoting their converged bundles, and to what effect.

About this report
 Executive summary
 Operators must carefully navigate converged bundles: customer take-up indicates strong demand but retail revenue decline continues
 Operators need to consider three areas as they design the mobile elements of their converged bundles
 Recommendations
 CUSTOMER RETENTION
 Converged bundles are rapidly transforming the customer mix of mobile markets
 Mobile postpaid churn rates steadily decline as convergence accounts for a significant proportion of an operators mobile contract base
 Fixed broadband retention also improves after converged bundles are launched and mobile service features matter
 Loose bundling of mobile services in converged bundles also brings clear retention benefits to fixed broadband
 Net Promoter Scores improve for mobile services when customers also buy fixed services, but US operators are exceptions
 SERVICE DESIGN
 Operators should answer four main questions as they design the mobile service element of their converged bundles
 Operators should try to keep high-end mobile customers on standalone plans to prevent revenue erosion from mobile services
 If competitive dynamics dictate, operators may have to widen the spread of mobile tiers in their converged bundles
 Operators design the tiers of their bundles depending on how effectively they can compete with their existing fixed and mobile capabilities
 Multiple-SIM initiatives beyond mobile add-ons can be used successfully as tools for customer acquisition
 Shared data pools and reserving valued features for multi-SIM plans help NOS and MEO in Portugal to accelerate mobile subscriber acquisition
 When converged bundles become the market standard and their prices are very low, operators may stop rewarding customers for convergence
 KPN in the Netherlands demonstrates the benefits of bundling services beyond discounts, in order to encourage convergence
 SERVICE INNOVATION
 Operators have a wide range of service options that they can add to their converged bundles, either for free or as upsell ...
 ... but they should also create new value specifically for converged bundles, instead of solely adding more services for more discounts
 APPENDIX
 ABOUT THE AUTHORS AND ANALYSYS MASON


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Reports Details

Published Date : Oct 2015
No. of Pages :47
Country :Global
Category :Telecommunications
Publisher :Analysys Mason Limited
Report Delivery By :Email
Report Delivery Time :12 to 24 hours after placing the order.

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