Double play. Triple play. Quadruple play.
No, we’re not talking about miraculous baseball feats—we’re referring to bundles of fixed, cable, mobile and internet services offered by a single communications service provider (CSP).
This concept of service convergence is shaping the future of telecommunications. According to more than 80% of industry experts surveyed, most broadband and internet services are merging with mobile and fixed services. Cable operators are embracing this wave of innovation to pave the way for a unified and streamlined customer experience. But doing so is easier said than done.
To find out how CSPs are approaching this task, Heavy Reading partnered with CSG to survey 93 North American cable and internet service providers (referred to as “service providers”) regarding service convergence trends and growth strategies. We’re sharing what we learned (and how to take a page out of their playbook):
Focus on Successful Service Delivery and Greater Network Investment
Effectively delivering a unified customer experience requires taking a strategic approach and prioritizing specific capabilities. Among the most widely suggested strategies from service providers were:
- Have a customer-centric focus. Understanding and addressing customer needs is paramount (91% of respondents).
- Integrate 5G: Harnessing the power of 5G is crucial for enhanced performance and innovation (89% of respondents).
- Offer cloud-based delivery: Embracing cloud-based infrastructure enables agility and scalability (89% of respondents).
- Expand your ecosystem: Collaborations and partnerships foster growth and market reach (88% of respondents).
Additional network investment is a prerequisite for success
To support the demands of converged services, additional network investment is essential. Almost all (89%) of the service providers surveyed acknowledged the need for increased network capacity to meet the evolving requirements of customers and technologies.
A Reduced Focus on a Bundled Service Model Is Leading to New Services
A shift from generalized bundled services to specific use case models is gaining momentum. Most (71%) service providers recognize that customers appreciate tailored offerings that address their specific needs and preferences. As consumer options expand, innovative service providers know that allowing customers to build their own bundles, selecting only the services they need, will likely be the norm. This transition, however, will require time and adaptation, as 59% of respondents still rely primarily on bundled services.
Benefits and limitations of bundled services
Bundled services still offer certain advantages, such as flexibility in pricing models, reduced marketing costs and simplified customer acquisition.
Service providers have further strengthened their appeal by integrating additional services into bundles based on market demand, including:
- Parental controls (73%)
- On-demand premium video streaming content (65%)
- Home security (52%)
- Gaming (44%)
- Health monitoring (29%)
Despite these advantages, bundled services still face certain limitations, including:
- Decreasing customer interest (28%), leading to churn
- Difficulty in upselling (24%)
- Perception of being outdated (22%)
3 Growth Strategies for Thriving in the Converged Services Era
How can CSPs apply these survey findings to achieve converged services success? Cable operators can begin by adopting three strategic growth strategies:
1. Enter the mobile market
Cable companies driven by the increasing popularity of mobile services and the potential for revenue growth are entering the mobile market, grabbing an ever-growing share as:
- MVNOs (Mobile Virtual Network Operators) (40%)
- MNOs (Mobile Network Operators) (31%)
The speed of 5G networks (72%) and the consumer allure of 5G devices (62%) are the top two mobile entrance drivers. Leaders like Comcast and Charter entered the mobile realm in 2020. And the sixth-largest U.S. cable provider, Astound Broadband, recently launched Astound Mobile, with plans to serve four million homes using T-Mobile’s network. The mobile service revenue pool is nearly 2.5 times greater than residential broadband, making mobile a lucrative prospect for cable companies.
2. Migrate services to the public cloud
CSPs can start small by strategically adding the following services to the cloud:
- Parental controls (67%)
- On-demand premium video streaming (62%)
This migration is driven by the scalability and cost efficiency of public cloud platforms, which will better position organizations for future growth opportunities.
3. Acquire new tools and technologies:
Like the service providers surveyed by Heavy Reading and CSG, bring in the following capabilities to see results faster:
- Digitization programs (55%)
- Automated network operations (54%)
- Advanced analytics (53%)
- Automated network optimization (45%)
These tools and technologies enhance service delivery and operational efficiency.
Find Service Convergence Success with a Trusted Partner
Service convergence presents a wealth of opportunities for cable operators to elevate their offerings and expand their market reach.
CSG, a leading provider of innovative customer engagement, revenue management and payments solutions, empowers cable operators to thrive in this dynamic environment. Our cloud-first architecture and customer-centric approach enables cable operators to:
- Launch cutting-edge digital services
- Expand into untapped markets
- Create dynamic customer experiences that attract new subscribers and foster brand loyalty
With CSG’s expertise and solutions, cable operators can confidently navigate the complexities of service convergence and unlock their full potential.
MWC Barcelona
Will we see you at MWC Barcelona? You can still meet with CSG’s experts to talk about initiatives that are practical enough to apply now, and bold enough to drive growth far into the future.
