Converged services reduce telcos' customer churn

Peter Dinham
Tuesday, 07 July 2009 08:01

Your IT - Home IT

Kalwar says with network convergence, thanks to IP, 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, and he claims operators are “banking on this opportunity to up-sell their services and increase average revenue per user (ARPU) and customer stickiness.”

He also says that with 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, and he predicts that “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,” Kalwar adds.

However, in a note of caution, Kalwar says that pricing alone is just part of the battle, and that “quality of service, timeliness of market entry and [type of] content will also make or break an operator’s converged offerings.

Citing Singapore’s StarHub, Kalwar says the company has virtually cornered the pay TV market in Singapore “with its exclusive content rights and early introduction of services,” but pointing out, however, that content and broadcast regulations vary country to country.