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Opportunities Beyond Quad Play Depend on Successful Cross Industry Alliances Says Frost & Sullivan - Many telecom companies are shifting away from traditional communications access providers and targeting the needs of a digitalized society
Opportunities Beyond Quad Play Depend on Successful Cross Industry Alliances Says Frost & Sullivan

 

NewswireToday - /newswire/ - London, United Kingdom, 2009/07/07 - Many telecom companies are shifting away from traditional communications access providers and targeting the needs of a digitalized society.

   
 
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To this end, they have started looking for ways to not only offer Quadruple Play or Quad Play services that include fixed telephony, fixed broadband, TV and mobile communication services but also to enable end users to perform their daily social and business activities.

This development has two main trends. According to Yiru Zhong, Frost & Sullivan Industry Analyst: "Service providers are keen to be relevant to their target customers by offering connectivity, entertainment and information services. The second main force is the shift toward a digitalised society in which end users increasingly conduct their lives in a digitally connected world."

Those twin factors set the scene for growth momentum in current economic conditions. Business models must adapt to remain relevant to end users in a convergent industry where success is largely measured by the scale of customers and/or networks. In an increasingly digitalised society, ubiquitous connectivity for daily social and business activities is both expected and demanded.

According to Frost & Sullivan's 2008 study, the revenues accruing to telecoms and pay TV service providers will reach around €208 billions at the end of 2008. By 2013, the revenue will reach €225 billions, driven by higher penetration of broadband connectivity and additional services such as TV/digital media and potentially connected home services.

Convergent industries rely on beneficial partnerships with key players in adjacent industries to ensure sustainable growth. Variants of such alliances can be observed as service providers address their distribution channels, content acquisition and cross-platform sales opportunities.

Orange is a good example of the benefits stemming from alliances. Through Orange TV, France Telecom has deepened end users' TV and media consumption habits. The company has also maximized various end user touch points through Orange TV's multiplatform strategy and with plans to inject greater end user interactivity through this Orange TV platform. By securing customer loyalty and enabling customers to interact freely with company content and within provided social groupings, France Telecom has strategically placed itself to monetize the relationship necessary to generate a third party revenue stream.

Successful transformation relies on tools that enable collaboration to effectively offer services that end users need and are willing to purchase. According to Frost & Sullivan, approximately €13.5 billion is being allocated toward investments in networks, platforms, systems and development in Europe.

The gradual but accelerating adoption of open standards, coupled with the desperate need of service providers to secure a sustainable revenue source from the existing end user market, means that life beyond Quadplay will require significantly more alliances to optimise resources and to start shaping the way the eco-system should collaborate in a connected home environment.

"We have only just witnessed one of the first few concrete steps toward pushing for a connected home reality – the leadership from telcoms from the point of view of network investments and service broadening is an important catalyst to kickstart the journey beyond Quad Play scenarios" – adds Yiru Zhong.

If you would like to receive some more information on Quad Play services and/or European Telecom Industry, please contact Joanna Lewandowska at joanna.lewandowska[.]frost.com. Please include your company name, query and contact information.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 35 offices on six continents.

 
 
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Opportunities Beyond Quad Play Depend on Successful Cross Industry Alliances Says Frost & Sullivan

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Frost & Sullivan |
Publisher Contact: Joanna Lewandowska 
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