Converged services reduce telcos' customer churn

Peter Dinham
Tuesday, 07 July 2009 08:01

Your IT - Home IT

Reduced levels of customer churn, revenue and subscriber growth have emerged as major benefits to telecommunications companies from the bundling of services, with a prediction that single-service offerings may soon be a thing of the past.

Converged services have become one of the marketing strategies employed by service providers today to grow revenues and subscriber base, and reduce customer churn, according to new analysis from Frost & Sullivan in its latest report on the Asia Pacific market.

“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.

In Australia, Kalwar paints a promising picture of Telstra’s initial success with the introduction of bundled services.

According to Kalwar, in just 30 months since mid-2006, Telstra has very swiftly transformed from a single-service operator to offering bundled quad-play services to its subscribers.

“In June last year Telstra held a commanding 58.5 percent share of the pay TV market in Australia through its 50-percent owned FOXTEL, after the cable TV network's viewers tied to Telstra-bundles grew to 30.6 percent the same year.

“The company also upped the ante on its retail store experience introducing its interactive T[life] stores in November 2007. The result, a 71 percent increase in revenues from postpaid subscriber net additions and a 31 percent increase in total sales net additions, within a year of operations.”
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