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Cambridge, MA, February 9th, 2005 – According to an upcoming report from Pyramid Research, “Demystifying Triple Play,” the business case for traditional triple play may not be as profitable as perceived. Nonetheless, it still presents an opportunity for telcos to increase overall revenue, brand awareness and market positioning.
Telco enthusiasm for triple play – the bundling of telephony, broadband Internet and TV/Video-on-Demand – is rapidly growing. Numerous upstarts and incumbent telcos have moved into a sector that was once dominated by cable companies, and more will enter in 2005.
Author Guy Zibi comments, “The triple play offering does not necessarily increase broadband market share and may decrease margins as telcos bid for premium content.” Key triple play carriers in Italy and the UK have actually seen declining broadband market share. Single play providers have grown faster, and market estimates indicate their margins at 75% versus double and triple play margins of 70%.
On the flip side, triple play increases average revenue per user (ARPU) and is a key factor in reducing churn. The report argues that for competitive and strategic reasons, it is critical for telcos to enter the triple play business, though they need not become broadcasters. Co-author Joel Cooper adds: “The triple play model can be successful if carriers focus on what they do best: funneling the aggregated content to the end-user over their infrastructure. By freeing itself from the broadcast side, the telco can also spend greater resource on developing VoD functionality and securing content for it.”
About “Demystifying Triple Play: Analysis of Strategies, Potential and Key Players”
This report looks beyond the features and capabilities of the triple play and focuses on its potential and shortcomings. Areas analyzed include current triple play financials, strategy and offerings, technology implications of fiber vs. ADSL, the importance of content, how the triple play sector will develop and who will shape this landscape. Email sales@pyr.comto request a report excerpt.
Pyramid Research is the growth strategy expert for the global communications, media and technology industries. Pyramid provides research and consulting services in over 100 countries - helping clients to go beyond existing boundaries by tracking and exploiting business opportunities worldwide.
For more information on Pyramid Research visit www.pyramidresearch.com.
Press Contact:
Jared Jost
Pyramid Research
jjost@pyr.com
(617)494-1515
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