Do we really need quad play?
The telecoms market is currently undergoing a rapid change and all the top providers are doing their best to ensure that they do not get left behind.
‘Quad play’ refers to the provision of all four major communications services: TV, broadband, fixed line phone and mobile phone. From the point of view of the user, obtaining all four services from one provider makes billing easier and could cut down on costs; meanwhile, the providers are seeking to ensure that customers remain loyal and feel that the easiest way to do this is to make sure that they can provide everything their customers want. The reality is that quad play is simply the way that the telecommunications system has evolved.
One of the leading players is BT. The company already offers a strong triple package of TV, broadband and fixed phone line services and is currently negotiating the purchase of EE, one of the biggest mobile phone providers. This deal will automatically make BT very strong in all four services.
The competition is now getting worried. Sky is in a similar situation to BT, already offering a strong triple play package and negotiating with O2 to offer mobile phone services. A potential deal is on the cards between O2 and Three, which could make O2 the largest mobile phone provider and Sky a real contender for the top quad-play provider.
Both BT and Sky are in competition with Virgin Media, a company that has been providing quad-play services for a long time and has a strong market share. Around 65% of Virgin’s customers use at least three of its services and BT and Sky have not yet been able to replicate this figure.
Is it really necessary for providers to offer all four services, or is it just a question of one company trying to keep pace with another? Is this reminiscent of the so-called need for 3D TVs a few years ago? Manufacturers sold these TVs on the basis that 3D was going to be the next big thing and that everyone needed it; however, this turned out not to be the case. Most people did not even want it, but they still ended up with TVs with 3D technology that they never made use of it.
Quad play will be a success, particularly for those who do not want the hassle of separate bills for all the different services, but much will depend upon how good the marketing is. People need to be convinced that having all four services with one provider is going to be good for them and it is almost certain that the marketing will convince many that this is the case.
Broadbandchoices.co.uk telecoms specialist Dominic Baliszewski warned customers that they must not be dazzled by the mobile phone companies’ marketing. He said: “Bundles are cheaper because providers want to avoid customers switching away, but do stay focused on what you need from a mobile phone service. Quality of coverage, network speed and a generous data allowance are all just as important as how much you actually pay.” This could not be more true.