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June 27, 2006 Making Broadband Triple Play Profitable: Swedenby Lars Godell with Lizet Menke, Ellen Daley, Andrew Parker, Andrea Carini |
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This is an excerpt
Executive Summary
Swedish consumers are interested in broadband triple play but do not want to pay a lot for it. This means that incumbent telco TeliaSonera will struggle mightily 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 require significant deep fiber investments would be financial suicide for TeliaSonera. We predict a cumulative per-subscriber loss of €2,058 in year 10, thanks to low revenue growth and massive backhaul costs. In addition to limited price tolerance from Swedish consumers, IPTV-based triple play is also up against well-entrenched and inexpensive cable TV offerings and increasingly popular, cheap DTT services, thereby limiting revenue growth. What can TeliaSonera expect if it continues down this path? High investment costs and lots of price and content competition for TV subscribers.
Features
Model: Swedish Triple Play Generates Losses Of €2,058 Per Subscriber
This is an excerpt
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