Convergence offers the potential to deliver multiple services to customers.
Apart from delivering additional revenues and improving returns on the
investment made, supplying multiple services to one customer increases
stickiness, and provides better understanding of customer needs and interests
to the operator.
However, operators have had mixed success in successfully selling converged
services. In part this arises from the nature of the services; mobile services
tend to be personal, fixed are for households, raising questions about the
best way to segment the market. In addition the pricing structures currently
employed are derived from a business dominated by voice traffic, and are
ill-suited to a business dominated by data traffic.
However, in a situation where operators are using pricing models based on
voice traffic while data usage is set to grow exponentially, convergence may
be the essential element that allows tariff and traffic rebalancing and avoids
MNOs becoming constrained by their own failure to extend their propositions to
provide full services to the customer base.
This report considers methods of segmenting the market for converged services,
and proposes an approach to suit the market characteristics. It also looks at
the criteria for developing propositions for the market segments identified,
and how and whether these can also address the need to restructure the pricing