本報告已在2011年07月19日停止出版。
Abstract
Triple Play to Influence Competition between ILECs and MSOs
As multiple system operators (MSOs) and incumbent local exchange carriers (ILECs) battle it out to win over subscribers, a triple play strategy that bundles voice, video, and data services can be a key determinant of the consumers final choice. While ILECs competitive strength lies in traditional voice services and the ability to combine a wireless offering in the bundle, a triple play strategy offers MSOs the opportunity to leverage their better video position, and combine that with broadband Internet and new voice services. With an adequate network in place, MSOs also have the advantage of a better starting point for services such as video. ILECs need to focus on their bundling strengths such as innovative price cutting tactics, wireless services, and integrated home/work offerings that leverage their business customer relations.
This Frost & Sullivan research covers the competitive positioning of US and Canadian ILECs and MSOs and their current and future strategic plans regarding triple play. It investigates the impact of these new entrants in both the video and voice markets from both the end user and the service provider perspective, and examines the strategies, expected deployment plans, and capital expenditures associated with triple play services. Analysis of various triple play product offerings and bundling tactics will provide service providers with valuable insights on how to maximize profits through a triple play offering.
A Third Player and not the MSOs Is Likely to be the Main Threat for ILECs in the Long Term
Besides the video vulnerability, ILECs must also be worried about price pressure coming from a third competitor in the broadband access market, which might change the current duopolistic-established price. During the time it will take ILECs to deploy their new fiber infrastructure, there will be many opportunities for the emergence of other players in the market, using technologies such as broadband wireless access (such as WiFi, WiMAX / 802.16 and 802.20) and broadband over power lines.
"A triple play bundle can lower churn, offer up-selling opportunities and will decide how the battle board between ILECs and MSOs will be drawn in the future", say the analysts of this research.
The US and Canadian Outlook
"In U.S. the triple play landscape will be shaped by the competition between the regional bell operating companies (RBOCs) and the MSOs who are expected to substantially increase their VoIP subscriber base". The RBOCs are themselves divided in 2 camps: the Verizon camp, with its longer-term fiber to the premise (FTTP) plan versus the SBC Communications camp, with its shorter-term fiber to the node (FTTN) strategy. Canada is also slowly catching up on triple play, with ILECs such as Bell Canada and TELUS initially relying on bundling strategies and slower fiber rollouts. Shaw Communications has already launched a VoIP cable service and Rogers is expected to follow suit.
Table of Contents
1 ANALYSIS OF NORTH AMERICAN ILEC AND MSO TRIPLE PLAY STRATEGIES
- Introduction
- Disclaimers
- Overview
- Table of Contents
- Executive Summary
- Competitive Landscape
- Telecom Services Competitor Matrix
- The ILEC View of The World
- U.S. ILEC Access Line Loss Sources
- MSO: The Main Competitor
- MSO: Video Strength
- A Third/Fourth Player: The Main Threat in the Long-Term
- What About IXCs / CLECs?
- The MSO View of The World
- MSO Strategy Overview
- MSO Video Strategy: Defend
- MSO Data Strategy: Develop
- MSO Voice Strategy: Attack
- The Strategic Importance of the Triple Play
- Service Provider Corporate Strategy Positioning
- ILEC / MSO Battlefield: Bundle Versus Bundle
- Two-Player Market Becoming a Multiple Player Market
- Bundling Rationale (ILECs)
- Bundling Rationale (MSOs)
- Service Provider Implementation Plans for the Triple Play
- ILEC FTTX Plans - Summary
- ILEC RFP Plans: Bell South Deploys Broadband Infrastructure
- ILEC RFP Plans: Qwest Has no Current RFPs
- ILEC RFP Plans: SBC Deploys Broadband Infrastructure
- ILEC RFP Plans: Verizon Deploys Broadband Infrastructure
- Canadian ILECs: Bell Canada
- Canadian ILECs: MTS / Allstream
- Canadian ILECs: Telus
- U.S. MSO Strategy IP Telephony Deployments
- MSO Plans: Cablevision
- MSO Plans: Comcast
- MSO Plans: Cox
- MSO Plans: Time Warner Cable
- Canadian MSO IP Telephony Deployment Plans
- Canadian MSO: Rogers Communications
- Canadian MSO: Shaw Communications
- Canadian MSO: Videotron (Quebecor)
- What About Vonage?
- How the Triple Play Impacts An Operators Bottom Line
- Potential ARPU Impacts
- ILEC Potential Revenue Mix / Home: 2003 x 2010
- MSO Potential Revenue Mix / Home 2003 x 2010
- Evidence that the Bundle Works
- A Closer Look at Coxs Experience
- Benefits to the Customer
- Impact of Regulatory Constraints on Operators Triple Play Strategies
- UNE-P and Its Triple Play Impact
- June 2004 UNE Ruling Impacts
- The October Fiber Ruling and Its Implications
- U.S. VoIP Regulation Backdrop
- Canadian VoIP Regulation Backdrop
- Market & Technology Issues
- Triple Play Impact of POTS
- IP Multi-Cast Usage for TV Programming: Issues
- FTTN Pros and Cons
- FTTP Pros and Cons
- FTTX Associated Last Mile Technologies: Distance Tradeoff
- US RBOC Loop Length Analysis
- Expected MSO CAPEX / Customer
- A Look at Some Triple Play Offerings (North America)
- US ILEC Triple Play Offerings
- Canadian ILEC Triple Play Offerings
- US MSO Triple Play Offerings
- Canadian MSO Triple Play Offerings
- Conclusions
- Awards
- Infrastructure Vendor Market Leadership Award
- Competitive Strategy Leadership Award
- Product Innovation Award
- Appendix
- Alternative Last Mile Technologies
- Broadband Wireless: WiFi / WiMax
- PONs: Passive Optical Networks
- VDSL: An Alternative to Satellite
- Broadband Over Power Lines (BPL)
- What will the "killer apps" be?
- Glossary
