Sunday, April 14, 2024

    More than half of telcos are looking at super bundling opportunities, with $10m of investment in the offing

    More than half (54%) of telco leaders are betting on Super Bundling, as they plan investments of at least $10 million in Super Bundling hubs. Almost a quarter (23%) are willing to go further, planning to invest more than $20 million, according to the latest research from Bango.

    Super Bundling offers consumers a simplified way to manage multiple subscription services in one place. By centralizing subscriptions like music, video, news and more under one platform, Super Bundling eliminates the consumer headache of tracking different billing cycles, payments, and logins.

    For telcos, Super Bundling provides a new customer retention and acquisition tool thanks to the highly desirable subscription services they can offer. By creating an easy way for consumers to access and pay for premium entertainment and information services, telcos can also drive higher average revenue per user (ARPU) and customer loyalty, as well as positioning themselves as cutting-edge, innovative brands.

    The research highlights a growing confidence in Super Bundling, with 88% of telco leaders affirming their belief that it will become a vital new revenue stream in the coming years. Two-thirds (66%) of those surveyed cite their strong existing network infrastructure as a strategic advantage in delivering Super Bundling, allowing them to quickly roll out and profit from this new offering.

    American telcos remain ahead of the pack, thanks to trailblazers like Verizon, which recently launched its +play platform — bundling Netflix, Xbox Games Pass, NFL Sunday Ticket, and more. Data indicates that UK telcos plan to follow their US counterparts, with 88% of British companies surveyed planning to invest at least $5m in super bundling.

    With the subscription economy set to grow by $268bn in the next three years to reach $600bn in consumer spending, telcos determined to grab their share of the revenue are thinking – and betting – big.

    That said, building a seamless one-stop subscription shop is far from simple. “Delivering frictionless content hubs through Super Bundling requires specialised technology, even for telcos with sophisticated networks,” said Bango CMO and co-founder Anil Malhotra.

    “While telcos may have the basic infrastructure required to support one-off bundles, building a unified user experience that brings together multiple vendor subscriptions is complex and costly. From seamless sign-up and billing to content partnerships and management, assembling all of the technical and operational components is very challenging.

    “Leveraging an industry-wide, subscription-bundling SaaS platform with a pre-configured ecosystem of subscription services allows telcos to avoid the time and risk of building custom systems. Instead, they can tap into a proven, evolving platform and focus on what they do best – delivering amazing experiences to their subscribers.”

    For more data on the state of the telco industry, view the full research report ‘From loyalty to acquisition, how Super Bundling became the new frontier for telco brands’ here.

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