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Canadian Bundled Services Market Makes Steady Progress Toward Fully-Converged Service Environment
Aug 02, 2007 (08:08 AM EDT)


PALO ALTO, Calif., Aug. 2 /PRNewswire/ -- The Federal Government's recent directive to the Canadian Radio-television and Telecommunications Commission (CRTC) to accelerate deregulation of the local phone services market and eliminate obstacles to the bundling and pricing of multi-service packages has given a boost to the bundled communication services market in Canada.

New analysis from Frost & Sullivan ( http://www.communicationsservices.frost.com ), Move toward Full Convergence: Communication Services Bundling for Canadian Residential Markets, finds that the bundled consumer communication services market in Canada generated revenues of CAN $4.53 billion in 2006. The revenues from bundled services are expected to keep growing at a double-digit compound annual growth rate (CAGR) from 2006 to 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Move toward Full Convergence: Communication Services Bundling for Canadian Residential Markets, then send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla@frost.com with your full name, company name, title, telephone number, city, state, country and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"Until recently, the top telecommunications companies in Canada including Bell Canada and Telus had adopted a cautious stance in pushing bundled services," notes Frost & Sullivan Industry Analyst Piyush Arora. "With the pace of deregulation picking up, Bell recently re-launched 'Bell Bundles', indicating its readiness to adopt bundling in order to tackle the 'triple/quad' play strategies of its cable competitors."

The gradual transformation in Canada's telecom regulatory landscape has accelerated as several important and potentially significant modifications in the regulatory rulings come into effect. For instance, the repeal of 'win-back' and promotional restrictions for local phone services in areas that have been approved for deregulation bode well for incumbent telcos that have been facing strong competition from cable and independent VoIP providers.

"Triple/quad/quintuple-play" bundles have so far been largely sold as discrete services in exchange for the benefits of lower price and the convenience of a single bill as well as a single point of contact for customer service. However, with competitive pressures mounting and customer expectations for bundling moving beyond bundling discounts and single bill, service providers are well on their way to offering the next level of converged services to gain an edge in the increasingly competitive consumer market.

"As consumers can now avail multi-service bundles from both telcos and cable providers, they are likely to choose the company that offers them the next level of bundling benefits," says Arora. "An integrated service environment that allows seamless access to the same service from multiple devices -- for instance, video content services that can be accessed from TV, PC/laptop and cell phone; is likely to find favor with consumers."

While the regulatory environment is definitely becoming more conducive, competitors nevertheless face several challenges in the bundled services market. Primary among these is the need for effective back-end systems including billing and operational systems that can support efficient delivery of multiple services to the same customer.

Telecom and cable service providers have been gradually upgrading their business support systems and operational support systems (BSS/OSS) as they add features and services lines in a piecemeal fashion. At the same time, current service subscribers have a low tolerance for service outages or billing errors as a result of porting to new systems.

"'Triple-play/quad-play' service bundling is evolving from a simple aggregation of disparate services offered on a single bill to integrated services that are delivered over a shared network infrastructure," explains Arora. "With the changed regulatory and technology environment leading to greater competitive pressures, minimizing any in-house inefficiencies by tightening BSS/OSS systems is vital for telcos, cable companies and new entrants."

This challenge assumes greater significance when some services in the bundle are sourced from an outside partner rather than exclusively provisioned in-house. Internal systems and processes need to be streamlined enough to allow cross-bundling programs to function smoothly and providers to offer flexible and competitive service bundles.

Move toward Full Convergence: Communication Services Bundling for Canadian Residential Markets, part of the Consumer Communication Services Growth Partnership Service, provides an overview of key trends in the consumer bundled services market as well as a detailed revenue/demand analysis of service bundling. It also identifies the key market drivers, restraints, and industry challenges and discusses current and emerging trends. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com .

Move toward Full Convergence: Communication Services Bundling for Canadian Residential Markets N15F-63 Contact: Mireya Castilla Corporate Communications -- North America P: 210.247.3830 F: 210.348.1003 E: mireya.castilla@frost.com Joanna Lewandowska Corporate Communications -- Europe P: +48 22 390 41 46 E: Patrick Cairns Corporate Communications -- Africa P: +27 21 680 3274 F: +27 21 680 3296 E: Sarah Lourdes Corporate Communications -- Southeast Asia P: +603 6204 5878 F: +603 6201 7402 E: Ravinder Kaur Corporate Communications -- South Asia, Middle East P: +91 44 42044760 F: +91 44 24314264 E: Jose Maria Jantus Corporate Communications -- Latin America P: +54-11-4777-9951 F: +54-11-4777-0071 E: Bo Zhang Corporate Communications -- China P: +86 21 5407 5780 Ext 8611 M: +86 13818113130 E: Sharmin Jassal Corporate Communications -- Australia & New Zealand P: +61 2 8247 8900 F: +61 2 9252 8066 E:

CONTACT: Mireya Castilla, Corporate Communications North America, mireya.castilla@frost.com+1-210-247-3830, fax, +1-210-348-1003, , or JoannaLewandowska, Corporate Communications Europe, +48 22 390 41 46,, or Patrick Cairns, Corporate CommunicationsAfrica, +27 21 680 3274, fax, +27 21 680 3296, , orSarah Lourdes, Corporate Communications Southeast Asia, +603 6204 5878,fax, +603 6201 7402, , or Ravinder Kaur, CorporateCommunications South Asia, Middle East, +91 44 42044760, fax, +91 4424314264, , or Jose Maria Jantus, CorporateCommunications Latin America, +54-11-4777-9951, fax, +54-11-4777-0071, orBo Zhang, Corporate Communications China, +86 21 5407 5780, ext. 8611,mobile, +86 13818113130, , or Sharmin Jassal, CorporateCommunications Australia & New Zealand, +61 2 8247 8900, fax, +61 2 92528066, , all of Frost & Sullivan

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