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ISPs Urged to Bundled Land and Mobile Broadband Services

Posted: 10th Oct, 2008 By: MarkJ
Analysys Mason, a global adviser on telecoms, IT and media, has urged UK ISPs to follow O2's (Be Broadband) example by combining land-line broadband services with newer Mobile Broadband products.

O2 UK’s new tariff gives subscribers one year of free 8Mbps land-line broadband when they sign up for the standard Mobile Broadband service. The mobile package costs £20 per month and has a data usage limit of 3GB per month.

Not only does Analysys Mason believe that the deal will help to boost uptake of O2's services, but it also hopes that the land-line product could help to offload some of the usage being placed upon mobile infrastructure:

Most mobile network operators (MNOs) – rightly – continue to be concerned that the traffic generated by the rapidly increasing numbers of mobile-broadband subscribers will make unsustainable demands on their network. MNOs should be considering ways to offload as much traffic from the wide-area network as possible. Combining mobile broadband with DSL brings benefits in the form of reducing traffic load on the wide-area network.

Bundling DSL and Wi-Fi with mobile broadband subscriptions should allow a large volume of ‘mobile-broadband’ data traffic to be offloaded from the macro network. Furthermore, as we have seen with voice contracts, most bundling will encourage customer loyalty and reduce churn, albeit with a risk of cannibalising revenue.

While we agree that it would make for a popular product, we're not so sure about the prospect of it helping to alleviate mobile data demand. Both services have rather independent roles in terms of location based usage already.

We can't see how consumers would shift their mobile data usage onto land-lines, in truth it's probably the other way around. After all, Mobile Broadband is a new product and why does anybody buy it except to use the service when away from home or work.
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