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October 30, 2006 Making Broadband Triple Play Profitable: BelgiumThis is the 13th document in the "Making Broadband Triple Play Profitable" series.by Lars Godell with Thomas Mendel, Ph.D., Lizet Menke, Andrea Carini, Daniel Krauss |
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Executive Summary
Belgian consumers don't want to pay a lot for the triple-play bundle. This means that incumbent telco Belgacom will struggle to make money on its IPTV-based triple-play offering. Forrester's new, detailed, bottom-up P&L model looks at the profit potential from 15 main revenue categories across 17 countries and shows that the vendor-recommended solution that requires significant deep fiber investments will present a huge financial challenge for Belgacom. Forrester predicts a cumulative per-subscriber loss of €2,783 in year 10, due to a slight revenue decline and massive backhaul costs. In addition to limited price tolerance from Belgian consumers, IPTV-based triple play is also up against well-entrenched and inexpensive cable TV offerings, thereby limiting revenue growth. What can Belgacom expect if it continues down this path? High investment costs and lots of price and content competition for TV subscribers.
Features
Model: Belgian Triple Play Generates Losses Of €2,783 Per Subscriber
This is an excerpt
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