These days many households subscribe to three services—Internet, landline and TV—from a single provider. The trend toward a single provider offering all four services, including mobile (known as “quad‑play”), is gaining traction across Europe, and analysts believe the UK could soon follow. Iain Regan, Executive Vice‑President of Sales and Marketing at customer management outsourcer Firstsource Solutions, examines what quad‑play could mean for the telecommunications industry.
Today the UK telecoms market is split: BT and Sky lead in internet, landline and TV services, while major mobile operators such as Vodafone, O2 and Orange focus on mobile offerings. This separation has been driven largely by cost. A typical line rental sits around £14.50 and a combined broadband and TV package often ends up between £30 and £40. Mobile plans commonly cost £40–£50, so bundling all four services can push monthly bills into triple‑figure territory.
In an environment where consumers scrutinise every element of their discretionary spending, committing to a £100‑plus monthly contract has so far undermined quad‑play’s appeal in the UK. However, if providers can engineer competitive bundles that lower overall spending, consumers stand to gain. Attractive quad‑play deals promise simpler choices—a single point of contact for all media needs—plus added value such as extra TV channels, additional data or call minutes customers might not buy separately.
Until recently, comprehensive quad‑play offerings in the UK have been limited, with Virgin Media a notable exception. That is starting to change. BT, which has found success in pay‑TV with sports channels, is re‑entering the mobile market through a deal with EE (the owner of Orange), signalling renewed interest in converged services. TalkTalk introduced a quad‑play strategy in 2012 but has yet to secure a dominant position. Vodafone has indicated plans to move into broadband and pay‑TV, though its CEO Vittorio Colao has adopted a cautious tone about how quickly the UK market will converge: “In the UK there is not a huge or super strong converged market but it could be different in six or 12 months.”
Looking abroad, the US market provides useful context. Companies such as AT&T, Verizon, Comcast, Cox and Time Warner offer quad‑play bundles, and American consumers have responded positively where significant discounts and deal‑driven negotiation are available. Still, despite this progress, penetration remains modest: Strategy Analytics forecast that only around 13% of US households would adopt quad‑play by 2016, illustrating that market shifts can be gradual.
European operators face similar pressure to find new growth avenues. We may see wireless providers and large telecom players merge or form deeper partnerships to deliver bundled services. Radical strategic moves are needed: analysts at McKinsey highlight that while data traffic in the US and Europe has increased more than fifty‑fold over five years, revenue has only doubled. Meanwhile traditional voice and text revenues are weakening—text income in Europe fell roughly 40%. Ofcom reported that UK telecoms revenue declined for the fourth consecutive year in 2012, slipping 1.8% to £38.8 billion.
Introducing quad‑play also brings operational challenges for telcos. Combining four services increases the potential points of technical failure, which raises demand for responsive, effective customer support. Consumers can easily switch providers, so preserving customer satisfaction through high‑quality service will be vital to retaining and growing market share.
Always‑connected customers consume and purchase content around the clock on a mix of mobile devices and home systems. They expect rapid, personalised support across multiple channels—email, social media, online chat and voice. Meeting these expectations requires consistent service quality and speed across every touchpoint.
To deliver that level of service cost‑effectively, many operators are turning to outsourcing partners that specialise in customer management. Experienced outsourcers can deploy Customer Intelligence (CI) platforms to analyse customer behaviour, identify triggers and preferences, and craft targeted messaging delivered through the most effective channels at optimal times. This data‑driven approach helps maximise the impact of communications while improving customer experience.
Quad‑play adoption in the UK is poised to grow in the coming months, but it will be only one element of a broader industry transformation. As telcos navigate this shift, customer service will either be their Achilles’ heel or the defining advantage that sets them apart in an increasingly competitive market.