Vodafone is expected to join the multi-play market of bundled telecoms and internet services, adding TV and broadband to their mobile services, following similar moves from Sky and BT.
The telecoms group plans to launch home broadband and cloud-based TV service in the year, and will begin selling “simplified” bundled mobile, internet and TV services, the Financial Times has reported.
Vodafone is well placed for the move into broadband services after acquiring a large national fibre network with its purchase of Cable & Wireless Worldwide in 2011.
Using cloud-based technology, Vodafone will provide TV content via the internet using a simple TV set top box with a bundled price plan for mobile customers.
Though Ofcom research shows only 2 per cent of British consumer are buying quad play, lagging behind other European countries, a source at Vodafone believes this shows an opportunity to grow the market.
A CCS Insight report into multi-play strategies has supported this claim, saying that most UK consumers were ready to embrace bundled services.
“There is clear consumer appetite for multi-play services: more than four in 10 people who do not have a multi-play bundle would consider signing up to one. Providers that already have a relationship with subscribers for two or more services are in prime position to up-sell.”
The emergence of a multi-play market in the telecoms industry will bring formerly remote companies into competition.
Though Sky, BT and Vodafone have their respective business focus on TV, broadband and mobile, their future strategies will be shaped by this convergence of markets.
DTG Staff | 04.02.2015