I had an interesting discussion with a client yesterday. We were discussing the "Free Broadband" services being launched in the UK by companies like Orange and BSkyB. Basically, they are all different spins on bundling - ie get "free" broadband when you subscribe to an expensive-enough package for voice / mobile / satellite TV.
It got me to wondering why "reverse" free mobile packages aren't offered - perhaps "Free mobile phone + 200 mins / 200 texts per month, when you subscribe to our £30 a month 20Mbit/s ADSL2 service"
Can't be too long before someone tries this angle, probably an fixed/broadcast provider with an MVNO arm, and not much of an existing mobile base to worry about cannibalising. BT, maybe?
Dean Bubley's Disruptive Wireless: Thought-leading wireless industry analysis
I would think that bundling works best if the primary service has enough margin to subsidize "free" bundling of something else which has low costs.
ReplyDeleteBroadband is a low margin commodity, so suits well for being bundled.
Mobile is good business, especially for the network operator. But maybe bundling could be attractive for some type of service provider.
TV offerings are quite differentiated, especially in markets with TV "addiction".
So probably high margins (just guessing here).
Therefore I believe that bundling TV with "free" broadband, VoIP, and maybe mobile is the most promising combination.
Hi Dean,
ReplyDeleteFreeBe TV is free mobile TV.
Right here, right now.
No bundling involved. Free.
Worldwide, mass-market, network-agnostic.
www.freebe.tv
How disruptive is that?!