Table of contents

Executive summary

In a nutshell

Key messages

Bundles and x-play: a stopover on the road to convergence

Differentiating between bundles and x-play
The destination is convergence

The roles of service bundling in corporate strategy

Corporate strategy goals addressed by service bundling

New metrics for a new era

Current performance measures are insufficient
Producing new metrics is not an easy task

Bundles: no longer a differentiator

Bundles are no longer unique in mature markets
Bundle comparability: an opportunity
Churn one, churn all

Bundles and x-play: the financial impact

Are bundles a panacea for declining revenue growth? The silence is deafening
So what financial data is available and what can it tell us about bundles?
Bundle discounts are counterproductive to margins
Bundles are not a cost-saving measure
X-play adds incremental revenues

Future bundle and x-play strategies

Why bother with bundles?
Filling your basket at the infotainment supermarket

Table of figures

Figure 1 Convergence roadmap
Table 1 New metrics needed for a converging sector
Table 2 Examples of European operators’ product bundles
Figure 2 Telefonica’s PSTN subscribers in relation to launches of bundle offerings, 1Q05–3Q07
Figure 3 Western European incumbents’ domestic fixed revenues, 2005–2007
Figure 4 Average quarter-on-quarter domestic fixed revenue growth* for Western European incumbents, 2005–2007
Figure 5 Average ARPU for European incumbents, 2005–2007
Figure 6 Average quarter-on-quarter voice and broadband ARPU growth for Western European incumbents, 2005–2007
Figure 7 Virgin Media bundle versus unbundled price
Figure 8 Virgin Media consumer cable ARPU and customers, 4Q05–3Q07
Figure 9 Costs and savings associated with bundle offerings
Figure 10 Broadband ARPU growth by service provider in France
Figure 11 The x-play service-oriented shopping basket