prepaid broadband services for cable industry
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Know all about the 'Prepaid Broadband Services Opportunity for the Cable Industry - CAPTURING PROFITABLE REVENUE GROWTHTRANSCRIPT
© 2012 WIPRO LTD | WWW.WIPRO.COM 1
Capturing Profitable
Revenue Growth
Prepaid Broadband Services Opportunity
for the Cable Industry
© 2012 WIPRO LTD | WWW.WIPRO.COM 2
The Prepaid
Broadband Services
Opportunity for the
Cable Industry
HIGHLIGHTS
The US cable industry should look at the
MSOs in the emerging markets, who
have managed to successfully
penetrate the low-income markets in
which they operate.
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Introduction
US Home Broadband Adoption, Source: PEW Internet and American Life Project
The challenge is to identify the levers that will enable broadband service providers to offer
profitable broadband packages at price points that the low-income market requires
Broadband adoption rates in the U.S. have plateaued over the past few years, as is evident
from the graph alongside.
While there have been, and continue to be, a number of government and nonprofit initiatives
focused on PC adoption and digital education, the largest barrier to broadband adoption is
price.
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Why Prepaid Broadband?
Learnings from emerging markets, where household incomes are
lower and credit histories are often non-existent
The penetration rates for telecommunication services, are amongst
the highest in the world.
The profits of companies offering plans are comparable with those of
major U.S. telecom providers
Prepaid broadband holds the key to tap into the low-income market segment
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Benefits of prepaid plans
• A prepaid plan results in less cost to the operator, due to lower customer care expenses, simpler IT platform, no bad debt expenses, and better monetization of infrastructure.
1. Reduced Cost
• By creating a segment-specific, profitable product, MSOs can harness the potential of an entirely untapped market.
2. Opens Whole New Market
• MSOs can experiment with various products in their target market, playing with the combination of price, speed, duration and usage to see how consumers respond to a product.
3. Enables Experimentation
• With prepaid plans, customers are able to use only that bandwidth for which they have paid, and additional bandwidth is available only if the customer makes an additional payment.
4. Usage-Based Billing
While the prepaid component is a critical aspect of the consumer value
proposition at work, it can also benefit service providers in the following ways:
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Deployment Strategies
Phase 1:
Connect to Compete
Introduce new customers to a prepaid plan.
Stabilize systems for a prepaid platform, evaluate initial results on a smaller scale and drive initial learning in a low risk environment.
Phase 2:
Subscriber Churn
Address existing customer churn by moving customers with payment challenges to a prepaid platform.
Drive further learning in a very targeted environment.
Phase 3:
Market Rollout
Create the brand, product and packaging elements required to launch into a given market or markets.
Wipro proposes a phased deployment approach, as detailed below to
MSOs for implementing prepaid broadband solutions:
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Challenges Associated with Prepaid Products
Rigidity of Existing Billing Systems
Usage-Metering Solution
Cannibalization of Existing Product
Lower ARPU
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Conclusion
Given the stagnating broadband penetration,
cable operators need to look at offering prepaid
plans in the markets where they operate.
This can help them penetrate lower-income
markets and allow them to tailor their broadband
offerings according to the needs of the various
market segments.
It also allows MSOs to introduce the concept of
usage-based payments, a point of potential
contention between the industry and its
customers.
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For more details please visit the link below:
http://www.wipro.com/Documents/insights/whitepaper/Wipr
o_Accelerate_Whitepaper_Final_19_09.pdf
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Wipro set up the Council for Industry Research, comprised of domain
and technology experts from the organization, to address the needs of
customers. It specifically surveys innovative strategies that will help
customers gain competitive advantage in the market. The Council, in
collaboration with leading academic institutions and industry bodies,
studies market trends to help equip organizations with insights to
facilitate their IT and business strategies.
For more information on the Research Council visit
www.wipro.com/insights or mail [email protected]
About Wipro Council for Industry Research
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About Wipro Technologies
Wipro Technologies, the global IT business of Wipro
Limited (NYSE:WIT) is a leading Information
Technology, Consulting and Outsourcing company,
that delivers solutions to enable its clients do
business better. Wipro Technologies delivers winning
business outcomes through its deep industry
experience and a 360 degree view of “Business
through Technology” – helping clients create
successful and adaptive businesses. A company
recognised globally for its comprehensive portfolio of
services, a practitioner’s approach to delivering
innovation and an organization wide commitment to
sustainability, Wipro Technologies has over 135,000
employees and clients across 54 countries.
For more information, please visit www.wipro.com
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Thank You ©Wipro Limited, 2012. All rights reserved.
For more information visit www.wipro.com
No part of this document may be reproduced in
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Wipro is not liable for any business outcome based
on the views presented in this document. For specific
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