Triple Play Tough Sell For Telcos
Worldwide subscriptions of Internet, television and landline phone service from one provider are estimated to reach 34 million in 2007, according to Pyramid Research’s "From Triple-Play to Quad-Play: Strategies, Business Models and Best Practices" report.
Pyramid Research found that triple-play offerings would not improve telecommunications service provider’s margins in the short term. Getting TV content to resell can be pricy, and many customers already have phone service, which makes it a difficult sell.
Multiplay offerings have enhanced the competitiveness of broadband and cable providers’ core services, but we doubt their effectiveness in pushing PSTN voice [landline phone service]," said Dan Locke, analyst with Pyramid Research.
Locke said that content strategies affect margins. Telecommunications firms with unique content usually have higher costs that those with lighter content shared with partners.