BEREC REPORT ON IMPACT OF FIXED-MOBILE ... - berec - Europa

BoR (11) 54
at 2Q 2011. Western European fixed operators can use relatively cheap prices to keep
customers, in a way CEE 64 fixed operators cannot. Because the mobile market in CEE
is more competitive than the fixed market, mobile voice is cheaper (by 63%, excluding
Russia, at 2Q 2011).”
Bundles
Service packages (bundles) may influence significantly the trend towards fixed to
mobile substitution.
Bundles are becoming more and more popular among EU citizens (four out of ten EU
households are buying bundles of communication services from a single provider –
42%; +4% 65 ) and internet access and fixed telephony are the most common items in a
package (respectively 90% and 82% of subscribed bundles include them). Fixed
telephony services are now bought as part of a service package in 48% of the cases
(42% in Q4 2009) 66 . This means giving up fixed access and substituting it with mobile
access may have more significant implications. Due to the uptake of bundled
packages, fixed operators can get stronger loyalty from their customers. Bundles are
thus important parameters that need to be considered in a FMS.
There appears to be a correlation between the penetration of bundles and fixed mobile
substitution patterns. Countries such as Finland (14%) or the Czech Republic (19%)
that exhibit an increasing number of mobile only households have the lowest rate of
bundle penetration. Countries such as Sweden (50%), the Netherlands (67%) and
France (55%) that exhibit high and steady rates of fixed access penetration also have
higher rates of bundles penetration.
The development of quadruple play bundles (TV, fixed telephony, mobile telephony,
Internet access) in certain countries tends to show that mobile and fixed telephony
services are regarded (or at least offered) as complements and not substitutes.
Quadruple play bundles are not popular at the European level (2% in Q1 2011
according to the E-communication household survey).
SUBSTITUTION OF FIXED DATA SERVICES BY MOBILE DATA SERVICES
Price
As for voice, prices (including subscription schemes) may influence the trend toward
fixed to mobile substitution. The 2010 E-communications household survey points out
64 CEE: Central and Eastern European Countries
65 E-communications Households Survey (2011)
66 Source: E-communications Households Survey (2011)
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