Product Code: TE0009-001381
Convergence of the fixed-mobile sectors will become crucial in 2015, as revenues remain under pressure, competition increases, and new revenues continue to be difficult to come by.
Convergence of the fixed-mobile sectors will become crucial in 2015, as revenues remain under pressure, competition increases, and new revenues continue to be difficult to come by. The need to have a quad-play service is driving fixed-only and mobile-led operators, particularly in Western Europe, to invest billions of dollars on M&A in order to have a quad-play service.
- Faced with saturated mobile and fixed markets, and new challenger operators disrupting the market, the longevity of leading fixed-only broadband operators and mobile-centric operators is doubtful. These operators are making quad-play bundling the center of their strategies, and that has sparked a wave of M&A.
- Evaluates key trends that we expect to dominant the mobile and fixed broadband landscape in 2015, including convergence, consolidation, bundling, pricing, and new revenue opportunities.
- Quantifies the revenue (voice and data) and subscription growth prospects for 2015.
- Why have operators in Western Europe, South America, and the US spent billions of dollars on acquisitions and why do we expect this to continue in 2015?
- What will be the key new revenue drivers for 2015?
Table of Contents
- Ovum view
- Key messages
Revenue outlook for 2015
- Mobile voice revenues will be hit hardest in Europe
Subscription outlook for 2015
- Mobile to grow by 5.2%, but fixed broadband leads with subscription growth of 7.2%
- Evolution to high-speed broadband dominates fixed and mobile
- Wi-Fi becomes a more integrated service proposition and helps to reduce churn
- Competition driving next-generation access, migration challenges to intensify
Monetizing connectivity services
- More tariff innovation required to monetize LTE and fiber services
- Multi-play penetration to reach 50%, as quad play increases in relevance
- IPTV as a justification for next-generation access to come under scrutiny
- Indirect monetization and customer retention are also important
- The quest for quad play drives convergence consolidation
- Telcos need to manage device and service complexity for customers
- Further reading
Seeking new revenue opportunities
- Operators seek to extend connectivity into new usage areas
- VAS emerges as a key differentiator and can even boost blended ARPU
- Operators innovate on converged services, as bundling of fixed and mobile services rises