Telecom operators will soon need to offer OTT, cloud and multiscreen content in their bundles to satisfy subscribers.
Because of the changing market, a wider range of content from companies like Netflix, Spotify, and Skype will probably need to be included in bundled products, said Informa Telecoms & Media, in a new research report. It also revealed that operators all over the world are offering new services to bring more value to bundled products.
Tony Brown, senior analyst at Informa Telecoms & Media, and lead author of the report, said this new bundling market will be a challenge to operators because they may not directly receive financial rewards from the new products offered.
Brown said many subscribers will resist paying extra for new services, so these services will need to be included in the existing bundled price.
“Operators need to see the addition of these new services, such as cloud storage or OTT content, as something that brings extra value and increases customer loyalty – and go at least some way to neutering the threat posed by OTT players in a number of fields," Brown said.
The report said operators want to take advantage of existing subscriber relationships to sell many non-telecom services, such as insurance and banking services.
“These operators are really stealing a march on their counterparts in developed markets by using the position of trust and ongoing relationship that they have established with their subscribers to open up much wider commercial opportunities," Brown said. "The possibilities they have created are potentially game-changing in the wider telecoms market."
In addition to offering OTT, multiscreen content and cloud-delivered services, global operators are rewarding their bundled subscribers by revamping loyalty programs, Brown added.