UK service providers will benefit from consolidation and multiplay strategies in the coming years, with bundled subscriptions set to grow by 20%, according to new research.
The Strategy Analytics report claims that quad-play revenues will triple between 2015 and 2020, while total multi-play market revenues will grow by 34%.
By 2020, quad-play is tipped to account for more than 21% of bundled subscriptions in the UK, while double-play subscriptions are expected to peak in 2016 and decline thereafter as customers move to triple- and quad-play bundles.
“Multiplay bundled services are rapidly gaining ground in the UK as more players have entered this space through expansion and acquisition,” said Jason Blackwell, director of the Service Provider Strategies service at Strategy Analytics.
“BT’s acquisition of EE has positioned the company very well, enabling cross-selling of services and giving BT a strong network with fibre and 4G. Based on its strategies in the Netherlands and New Zealand, Vodafone may need to revisit the opportunities for partnerships in the UK.
“Competition in the UK market is already intense, and we expect to see price discounts in the form of long term introductory offers and through multi-service purchase, as operators try to take customers from competitors. However, the successful operators will avoid a race to the bottom, and hold overall pricing by upselling customers to faster broadband speeds, premium TV channels and larger mobile broadband buckets.”
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