SINGAPORE: Converged services have become one of the marketing strategies employed by service providers today to grow revenues and subscriber base, and reduce customer churn.
"Bundling two or more services such as fixed voice, broadband, mobile and pay TV into attractive price plans has proven to result in less customer churn than single-service offerings," says Frost & Sullivan senior industry analyst Kamlesh Kalwar. He cites Hong Kong's PCCW which has managed to keep churn rate below one percent since introducing its converged services.
Kalwar further reckons that single-service telco offerings may soon be a thing of the past as tomorrow's consumers are likely to demand fully converged services from a single provider as a result of changing lifestyles and technology convergence.
New analysis from Frost & Sullivan, Asia-Pacific Converged Services Market Potential, reveals that approximately 20.8 percent of households across 14 Asia-Pacific countries subscribed to dual-, triple- and quadruple-play (quad-play) services in 2008 for total bundled billings of $58.7 billion. By 2014, residential bundled-service revenues are expected to hit $88.3 billion.
Dual-play services, typically fixed-line and broadband, are the most commonly contracted bundles at present, with 10.8 percent of residential users.
Triple-play services (fixed-line, broadband and TV) however are likely to see greater adoption in the longer term to account for 11.4 percent of residential subscribers in 2014; while dual-play subscriptions drop to 10.2 percent household penetration and quad-play (fixed-line, TV, broadband and wireless) expected to grow nearly two-fold to 4.9 percent.
Kalwar argues that three forms of convergence are driving the delivery of bundled or multiple services to a single user - convergence of networks, content and devices.
Network convergence: Thanks to IP (Internet protocol), existing networks are capable of delivering a multitude of services -- such as a broadband network enabling applications like Internet, TV and VoIP -- with just an incremental upgrade to the core network. Operators are banking on this opportunity to up-sell their services and increase average revenue per user (ARPU) and customer stickiness.
Content and device convergence: The increased mobility of present-day consumers dictates the need for multiple access points to the same content. Similarly, the sophistication of devices available today supports consumers' expectations for ubiquitous access to such content.
Given this, Kalwar believes that converged services present obvious benefits to both service providers and users, "Converged services is expected to be a critical strategy for communication service providers in the mid- to long-term.
"Apart from meeting customers' demands with attractive price points while maintaining ARPU and retaining customers, telcos are also able to roll-out loyalty programs to reward subscribers and offer one-stop customer service centres and consolidated monthly billings for users," he adds.
Kalwar cautions however that pricing alone is just part of the battle. "Quality of service, timeliness of market entry and [type of] content will also make or break an operator's converged offerings. StarHub, for example, has virtually cornered the pay TV market in Singapore with its exclusive content rights and early introduction of services," he says, adding however that content and broadcast regulations vary country to country, of course.
Showing posts with label mobile TV. Show all posts
Showing posts with label mobile TV. Show all posts
Friday, July 3, 2009
Thursday, June 4, 2009
Nextreaming, RMI to deliver CMMB mobile TV
CUPERTINO, USA, SEOUL, KOREA & TAIPEI, TAIWAN: RMI Corp., a leading provider of high-performance processors for communication and media rich applications, and Nextreaming, a leading provider of embedded multimedia software for mobile devices, announced that they have successfully combined and optimized their technologies to enable first-in-class devices supporting mobile TV services over China Mobile Multimedia Broadcasting (CMMB) network.
NexTV for CMMB is mobile TV software for Chinese mobile broadcasting services which is becoming one of the most important mobile TV services worldwide. NexTV for CMMB follows Nextreaming’s ultra-reliable and market leading mobile TV clients for T-DMB, S-DMB, OneSeg, DVB-T and DVB-H. It reflects know-how and expertise accumulated in over 5 years of experience providing mobile broadcasting software to handset manufacturers and portable device makers.
Following RMI and Nextreaming’s already successful cooperation for T-DMB and DVB-T based on the Au1250® Processor, the partnership’s current achievement has been to create a ready-to-go platform that is fully compliant with the CMMB standard and is fully optimized to provide an enhanced user experience.
It is optimized for RMI’s Alchemy Au1250 Processor and the Au1300 Processor family, reducing the time to market for device makers. The software solution includes the support of CMMB channels encrypted with Nagravision’s Conditional Access System (CAS) and China Mobile’s Mobile Broadcast Business Management System (MBBMS).
Mike Wodopian, vice president and general manager, RMI, said: “Working with Nextreaming has enabled us to successfully deliver a mobile TV solution to our customers covering multiple TV standards including CMMB, T-DMB, and DVB-T which are important to our continued success in the portable media and mobile internet device markets. We are happy to have them as a partner.”
‘Following numerous success stories with T-DMB and DVB-T on the RMI Au1250 processor, we will surely help our customers to make other success cases with our NexTV software for CMMB,” said Dr. Il-Taek Lim, Nextreaming CEO. “Our partnership with RMI is in line with our strategy to combine Nextreaming’s technology with complementary technologies from selected leading companies. We are proud of our collaboration with RMI with the common goal to satisfy our customers and to help ensure the future success of their business.”
NexTV for CMMB is mobile TV software for Chinese mobile broadcasting services which is becoming one of the most important mobile TV services worldwide. NexTV for CMMB follows Nextreaming’s ultra-reliable and market leading mobile TV clients for T-DMB, S-DMB, OneSeg, DVB-T and DVB-H. It reflects know-how and expertise accumulated in over 5 years of experience providing mobile broadcasting software to handset manufacturers and portable device makers.
Following RMI and Nextreaming’s already successful cooperation for T-DMB and DVB-T based on the Au1250® Processor, the partnership’s current achievement has been to create a ready-to-go platform that is fully compliant with the CMMB standard and is fully optimized to provide an enhanced user experience.
It is optimized for RMI’s Alchemy Au1250 Processor and the Au1300 Processor family, reducing the time to market for device makers. The software solution includes the support of CMMB channels encrypted with Nagravision’s Conditional Access System (CAS) and China Mobile’s Mobile Broadcast Business Management System (MBBMS).
Mike Wodopian, vice president and general manager, RMI, said: “Working with Nextreaming has enabled us to successfully deliver a mobile TV solution to our customers covering multiple TV standards including CMMB, T-DMB, and DVB-T which are important to our continued success in the portable media and mobile internet device markets. We are happy to have them as a partner.”
‘Following numerous success stories with T-DMB and DVB-T on the RMI Au1250 processor, we will surely help our customers to make other success cases with our NexTV software for CMMB,” said Dr. Il-Taek Lim, Nextreaming CEO. “Our partnership with RMI is in line with our strategy to combine Nextreaming’s technology with complementary technologies from selected leading companies. We are proud of our collaboration with RMI with the common goal to satisfy our customers and to help ensure the future success of their business.”
Sunday, March 29, 2009
Top 10 telecom predictions for 2009: Deloitte
Deloitte recently came out with its TMT (telecom, media and technology) predictions for 2009. Here are some bits from the telecom predictions for 2009. May I also take this opportunity to thank V. Srikumar, partner, Deloitte Haskins & Sells, for sharing this study. Thank you, sir!
1. Smart phones: how to stay clever in the downturn.
Mobile phone manufacturers should focus on developing smart phones features consumers want to use and are willing to pay for. They should work closely with operators to create easy-to-use services based on specific functionality that users value, says Deloitte. Smart phone manufacturers could also consider selling devices as price-competitive replacements for laptops. For some workers a smart phone may address all their communications, connectivity and applications requirements.
2. Data ascends from the basement to the boardroom.
Indeed! Data on customer information has been residing with telcos since ages. It is time now for the telcos to recognize that the data or information assets could become as significant to value creation as physical assets. Deloitte recommends that this customer information be integrated, and not appended or archived. It suggests that telcos should consider how to structure their activities to utilize their full spectrum of information. Having a CIO on the top management team and further, implementing a data governance framework, may become essential.
3. Digital communication loses its message.
In 2009, employees are likely to communicate digitally with each other in more ways, and in greater volumes, than ever before, says Deloitte. However, email may become obscure. The success of instant messaging was based on its greater immediacy and lesser formality. Growth of services like text messaging, has been driven by similar benefits. Companies should consider discouraging email for one day a week. Even not making indiscriminate use of the ‘reply-all’ function could save them time and money. Also, social networks may find that the best approach is to offer ‘white-label’ solutions to corporations, advises Deloitte.
4. The joys of disintermediation: why operators should embrace the application store.
According to Deloitte, in 2009, mobile phone users are likely to download over 10 billion applications to their mobile phones. A majority of applications are likely to be sourced from sites managed by mobile device manufacturers, consumer electronics firms and software houses. Although some operators may launch their own application stores38, the majority are likely to see no alternative to allowing their customers to access third parties’ stores. As the consumer awareness of mobile applications increases, the number of voice subscribers that add data subscriptions may well rise, boosting revenues. Applications could be used to drive operator loyalty and reduce retention costs.
5. Integration unleashes mobile phone convergence, finally.
Deloitte advises that while mobile handset manufacturers are getting better at convergence, they would still need to proceed with care. They should not assume that the mere addition of more features would guarantee success. Operators should study the consumers’ use of converged products in detail. It may help them identify revenue opportunities relating to converged functionality. The mobile phone may soon come to be regarded as the most successful converged product of all time.
6. Farewell mobile phone, welcome the wireless device.
All players in the mobile industry should understand how they are affected, for better or worse, by the emergence of the low-cost, multiple-standard chipset. The business case for the integration of wireless technology into a range of devices may be stronger. Mobile operators should consider their positioning -- whether to remain focused on the provision of long-range cellular mobile standards, or to become the aggregators of multiple wireless standards. Similarly, companies in other sectors should consider what low-cost integrated chipsets could enable.
7. The mobile broadband accident in slow motion.
As per Deloitte's study, data now exceeds voice volume on some mobile networks68, and with data traffic growing by several hundred percent on others, the cost of carrying data traffic could rapidly erode margins. Where possible, operators should try to divert heavy data traffic from cellular networks, and route it via other networks, such as WiFi-hotspots or home-broadband connections, at structured data tariffs. The operators need to focus marketing attention on managing customer expectations. They should examine the business model for mobile broadband carefully as well. With PC manufacturers increasingly integrating mobile broadband connectivity into their devices, diversification may soon be necessary.
8. The third screen goes dark: mobile television loses its reception
Deloite's study points out that everyone involved in the mobile TV industry -- an operator, a handset developer or a creative -- should take a long, hard, look at the demand for mobile television so far. The downturn could be a perfect opportunity to call time on a format that has too many fundamental challenges to work. It does not mean there's no space for mobile TV! Mobile telephony could provide an efficient payment mechanism for VoD -– delivered to the home set-top box, particularly for smaller VoD players. They can also be used to control the DVR. TV broadcasters can use mobile as part of their CRM strategies. Lots can be done, actually!
9. One for all and all for one: fiber networks change the shape of competition.
Shared ownership may reduce fiber's cost and risk, but may also require a new, unfamiliar approach to competition. Telcos and other companies should determine which skills they may need to hire to be able to compete on basis of services, or service levels, alone. Also, fiber-to-the-node (FTTN) or street-side cabinets may provide more than enough capacity for consumer and small business broadband, at a quarter of the cost of fiber-to-the-home (FTTH). Further, governments should complement their commitment to fiber deployment with campaigns to encourage adoption.
10. Mobile termination rates in Europe: a cut too far or a cut too fast?
Mobile operators in Europe, especially, have acknowledged that mobile termination rates (MTRs) must decline. However, 2009 is likely to see them push for a less drastic descent than the EC proposes. Consumer groups should monitor progress very carefully. Operators' knee-jerk reactions to sudden cuts could disadvantage millions of consumers, particularly those on low incomes. It may be better to call for a more moderate approach, from both operators and regulators. The local regulators should consider developing MTR glide paths that respect operators’ costs and market conditions.
1. Smart phones: how to stay clever in the downturn.
Mobile phone manufacturers should focus on developing smart phones features consumers want to use and are willing to pay for. They should work closely with operators to create easy-to-use services based on specific functionality that users value, says Deloitte. Smart phone manufacturers could also consider selling devices as price-competitive replacements for laptops. For some workers a smart phone may address all their communications, connectivity and applications requirements.
2. Data ascends from the basement to the boardroom.
Indeed! Data on customer information has been residing with telcos since ages. It is time now for the telcos to recognize that the data or information assets could become as significant to value creation as physical assets. Deloitte recommends that this customer information be integrated, and not appended or archived. It suggests that telcos should consider how to structure their activities to utilize their full spectrum of information. Having a CIO on the top management team and further, implementing a data governance framework, may become essential.
3. Digital communication loses its message.
In 2009, employees are likely to communicate digitally with each other in more ways, and in greater volumes, than ever before, says Deloitte. However, email may become obscure. The success of instant messaging was based on its greater immediacy and lesser formality. Growth of services like text messaging, has been driven by similar benefits. Companies should consider discouraging email for one day a week. Even not making indiscriminate use of the ‘reply-all’ function could save them time and money. Also, social networks may find that the best approach is to offer ‘white-label’ solutions to corporations, advises Deloitte.
4. The joys of disintermediation: why operators should embrace the application store.
According to Deloitte, in 2009, mobile phone users are likely to download over 10 billion applications to their mobile phones. A majority of applications are likely to be sourced from sites managed by mobile device manufacturers, consumer electronics firms and software houses. Although some operators may launch their own application stores38, the majority are likely to see no alternative to allowing their customers to access third parties’ stores. As the consumer awareness of mobile applications increases, the number of voice subscribers that add data subscriptions may well rise, boosting revenues. Applications could be used to drive operator loyalty and reduce retention costs.
5. Integration unleashes mobile phone convergence, finally.
Deloitte advises that while mobile handset manufacturers are getting better at convergence, they would still need to proceed with care. They should not assume that the mere addition of more features would guarantee success. Operators should study the consumers’ use of converged products in detail. It may help them identify revenue opportunities relating to converged functionality. The mobile phone may soon come to be regarded as the most successful converged product of all time.
6. Farewell mobile phone, welcome the wireless device.
All players in the mobile industry should understand how they are affected, for better or worse, by the emergence of the low-cost, multiple-standard chipset. The business case for the integration of wireless technology into a range of devices may be stronger. Mobile operators should consider their positioning -- whether to remain focused on the provision of long-range cellular mobile standards, or to become the aggregators of multiple wireless standards. Similarly, companies in other sectors should consider what low-cost integrated chipsets could enable.
7. The mobile broadband accident in slow motion.
As per Deloitte's study, data now exceeds voice volume on some mobile networks68, and with data traffic growing by several hundred percent on others, the cost of carrying data traffic could rapidly erode margins. Where possible, operators should try to divert heavy data traffic from cellular networks, and route it via other networks, such as WiFi-hotspots or home-broadband connections, at structured data tariffs. The operators need to focus marketing attention on managing customer expectations. They should examine the business model for mobile broadband carefully as well. With PC manufacturers increasingly integrating mobile broadband connectivity into their devices, diversification may soon be necessary.
8. The third screen goes dark: mobile television loses its reception
Deloite's study points out that everyone involved in the mobile TV industry -- an operator, a handset developer or a creative -- should take a long, hard, look at the demand for mobile television so far. The downturn could be a perfect opportunity to call time on a format that has too many fundamental challenges to work. It does not mean there's no space for mobile TV! Mobile telephony could provide an efficient payment mechanism for VoD -– delivered to the home set-top box, particularly for smaller VoD players. They can also be used to control the DVR. TV broadcasters can use mobile as part of their CRM strategies. Lots can be done, actually!
9. One for all and all for one: fiber networks change the shape of competition.
Shared ownership may reduce fiber's cost and risk, but may also require a new, unfamiliar approach to competition. Telcos and other companies should determine which skills they may need to hire to be able to compete on basis of services, or service levels, alone. Also, fiber-to-the-node (FTTN) or street-side cabinets may provide more than enough capacity for consumer and small business broadband, at a quarter of the cost of fiber-to-the-home (FTTH). Further, governments should complement their commitment to fiber deployment with campaigns to encourage adoption.
10. Mobile termination rates in Europe: a cut too far or a cut too fast?
Mobile operators in Europe, especially, have acknowledged that mobile termination rates (MTRs) must decline. However, 2009 is likely to see them push for a less drastic descent than the EC proposes. Consumer groups should monitor progress very carefully. Operators' knee-jerk reactions to sudden cuts could disadvantage millions of consumers, particularly those on low incomes. It may be better to call for a more moderate approach, from both operators and regulators. The local regulators should consider developing MTR glide paths that respect operators’ costs and market conditions.
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