Europe is a quad-play market where cable operators must offer converged products and services to reduce customer churn and increase revenue, said a top Liberty Media executive during an investment conference this week.
Speaking at the fourth-annual
MoffettNathanson Media & Communications Summit -- also webcast via Liberty Global's investor relations department -- Greg Maffei, president and CEO of Liberty Broadband and chairman, president and CEO of Liberty TripAdvisor (spun off from Liberty Media and Liberty Interactive) touted the need to offer a mix of fixed-line broadband cable, Internet, mobile and security.
"We are in a quad-play market today. it's not a theoretical thing. It's a very real thing. We know quad play reduces churn. We know people are much more likely to buy mobile from a fixed provider than they are fixed from a mobile provider," he said.
While it has taken steps to deliver on this vision, Maffei admitted its quad-play offerings are still works in progress, even in its three largest markets -- the United Kingdom, Belgium and Holland. Each nation has its own approach; Liberty Global then expects to use best practices learned from these in-country lessons across its other markets, he said.
In the UK, for example, Liberty Global's Virgin is an MVNO that partners with BT; Virgin offers enhanced video, broadband internet, fixed-line digital telephony, and mobile. In Belgium, 190,000 customers use Telenet's fully converged product, said Maffei. And although 600,000 overlapping subscribers of Ziggo and Vodafone received discounts, that's only the beginning of the program in Holland, he said.
"In the UK we haven't even moved our customer SIM cards over to MVNO yet. We haven't taken full advantage of the 4G pricing and the benefit of the BT deal. That's all happening over the next two, three years," said Maffei.
"We haven't converged, truly converged product yet. In Belgium, we have not moved a single Telenet customer over to the base network yet, no synergies yet. We've launched a fully converged product, but that's early days. In Holland, we just launched the deal. We're in transition in terms of executing the full quad-play but we know for sure it reduces churn and creates opportunities," he added.
— Alison Diana, Editor, UBB2020. Follow us on Twitter @UBB2020 or @alisoncdiana.