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How to Win with Convergence

The idea of convergence offers—packages that leverage an operator’s fixed and mobile assets—is not new. While some markets have shown high adoption rates of such offers, they often fail to deliver value for the operators. This is because most offers are simply discounted bundles that the competition can easily duplicate and win on price alone.

In addition, the types of bundles that are attractive to customers depend on the markets, and even the segments within the markets. Fixed-line services are a much smaller focus in emerging countries, but some regions, such as Malaysia and Brazil, still see rich adoption of such services among upper- and middle-class consumers. This creates challenges in managing a diverse set of services that can cater to both lower- and upper-class consumers.

There is a better way. By providing unique products that combine fixed, mobile, and TV services into a truly valuable package, telcos can turn the game around. The first success stories are emerging in Europe, but the full potential has yet to be realized.

Nine Ways to Gain Value with Convergence

Here are nine practical ways to do it.

1. Choose the right path

2. Take a household perspective

3. Expand the reach of traditional features

4. Look to bandwidth-intensive services

5. Partner for value-added services

6. Take a staged approach to implementation

7. Consider competitive responses and regulatory hurdles

8. Get organized and think long term

9. Measure success using the right KPIs

Telecommunications
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