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Strategy Analytics: Verizon Quad Play Tariff Targets Share
November 03, 2009 -- BOSTON, BUSINESS WIRE --
Verizon's newly announced Quad Play tariff represents a major shift in how Verizon bundles its services including mobile as well as broadband services at a significant discount from today's prices. According to the complementary Insight from the Strategy Analytics Tariff and Revenue Strategy (TRS) service, 'Verizon's New Tariff Bundles - Gaining Share with Quad Play,' with this aggressively priced tariff announcement, Verizon has set the stage to win multiplay users and increase its share of broadband connections. The new Verizon bundles will encourage Verizon home telephone customers to add both FiOS fiber broadband and Verizon's wireless service.
Sue Rudd, Director of the TRS service, notes, 'For the first time Verizon is not only encouraging new FiOS customers to add wireless service, but is reaching out to existing Verizon wireless customers to add Broadband and TV service without requiring them to get a home phone. This offer will be very attractive to the growing number of users whose only voice service is mobile wireless.'
The TRS program simulator tested three pricing scenarios based on estimates from over 1000 broadband users responding to a multi-store simulated shopping experience:
A. Quad Play for new FiOS Customers
B. Quad Play with DIRECTV for Current Landline Customers
C. Triple Play for Wireless Customers without a home Phone
Respondents were presented with options for single and multiplay services (TV, Internet, Telephone and Mobile Voice and Data). Options included a variety of features, device types, prices and operator brands in multiple stores.
The TRS simulator calculated the growth in total market potential, overall increased market penetration, Verizon's potential incremental share of broadband households and its potential incremental revenues.
Strategy Analytics simulation results indicate that if Verizon is the only Quad Play service provider in a market, it is likely to increase both market penetration and share.
In a forthcoming in-depth TRS Viewpoint, the Strategy Analytics Tariffs & Revenue Service will
- Estimate the impact of the net revenue change on Verizon's financial data; and
- Evaluate the potential impact of competitive responses e.g. from other multiplay cable operators.
About Strategy Analytics
Strategy Analytics, Inc offers high frequency market intelligence on multimedia, fixed and mobile communications. www.strategyanalytics.com