The digital home: the last frontier for multi–play operators, latest research from Analysys Mason

LONDON, UK, 16 February 2011 – Faced with market saturation for their core services, intense competition and the risk of being disintermediated by over-the-top players, multi-play operators in developed markets should deepen their reach into the home to generate new sources of revenue and enhance the ‘stickiness’ of their propositions. This is according to the latest research from global telecoms, media and technology (TMT) adviser Analysys Mason (www.analysysmason.com).

The combination of ownership of delivery platforms and relationships with subscribers, vendors and content owners places multi-play operators in a strong position to deliver solutions that enable consumers to store, manage and seamlessly consume their digital multimedia content on a multitude of devices throughout the home and beyond.

“In recent years, operators have undergone a strategic transformation, from being utility providers of voice and connectivity to acting as experience providers. The provision of multimedia digital home solutions represents the conclusion of this process,” explains Cesar Bachelet, Senior Analyst at Analysys Mason and author of Monetising the digital home: a new frontier for operators.

Opportunities within the digital home are not limited to multimedia. “Operators can add value to home automation networks by integrating them with their communications networks and enabling consumers to control key functions (such as heating and lighting), as well as connected appliances, remotely,” says Bachelet.

So far, the home automation market has been dominated by proprietary solutions, which require customised installations at a cost that is beyond the reach of most consumers. “A growing awareness of environmental issues and the recent economic slowdown are starting to ignite interest in home automation solutions, which reduce energy consumption and, as a result, lead to lower bills,” states Bachelet. “Operators should start to think about upgrading their platforms and devices now to incorporate new connectivity options and support new third-party services. This will accelerate their speed-to-market when the time is right to deploy these services. Adopting this two-stage approach to the digital home – focusing first on multimedia and then on home automation – will enable operators to play a greater role in consumers’ lives, thus enhancing the value and stickiness of their propositions.”