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Cambridge, MA, May 31st, 2006 – For most telcos, traditional voice is a key obstacle facing triple play uptake and subscriber RGUs (Revenue Generation Units) states Pyramid Research’s new report “Transforming Triple Play: Key Lessons and Best Practices for Winning RGU Strategies.” Many incumbent telco triple-play bundles are built to prop up voice revenues, rather than build adoption of other applications and customers are not biting.
“Telcos own destructive obsession to protect their legacy voice services has been detrimental to the development of attractive triple play services,” comments Research Director Guy Zibi. “Their reluctance to push VoIP is neutering the potential of their triple play offering.” Fixed operators and cablecos that have previously offered fixed line telephony are setting VoIP pricing closer to PSTN prices and substantially higher than third-party VoIP equivalents, a symptom of the reluctance to speed up the inevitable demise of PSTN services. “This is an industry-wide conundrum; fixed operators must tread a fine line between cannibalizing fixed line services with overcompelling VoIP pricing and offering unattractive VoIP services,” adds Zibi.
In the context of accelerating VoIP adoption, supporting PSTN with triple play is out of step with market dynamics. Some telcos (e.g. KPN) have understood as much, most (e.g. Verizon, France Telecom, BT) have moved slowly for a variety of reasons. Indeed, competitors are sensing vulnerability on this front, with many emphasizing the VoIP element of their packages to create obvious differentiation to accelerate incumbent telco churn.
“Many incumbent telcos are fiddling while Rome is burning” concludes Zibi.
About “Transforming Triple Play: Key Lessons and Best Practices for Winning RGU Strategies”
This report analyzes the value of the multi-play proposition. Through analytical case studies of existing triple play bundles, it examines the key ingredients in creating successful triple play models. It focuses on pricing, content, the strategic approach to triple play, as well as key performance indicators and bottom line impact. www.pyramidresearch.com/store/rp_triple_play.htm?SC=pr_tp
About Pyramid Research
For twenty years, Pyramid Research has helped companies in the converging communications, media and technology industries stay ahead of market trends, understand competitive threats and capitalize on opportunities. We advise the world’s leading vendors, service providers, equipment manufacturers, and the financial community on how to implement best practices, build offensive growth strategies and drive profitability.
Press Contact:
Jared Jost
Pyramid Research
jjost@pyr.com
617.494.1515
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