Integrated telecommunications services market in Poland 2015 Bundle and multi-play offer analysis

Integrated telecommunications services market in Poland 2015

Bundle and multi-play offer analysis

This report is the first expert study available on the Polish market regarding the segment of integrated telecoms services. This detailed and at the same time comprehensive analysis presents the bundle sales of telecommunications services for the Polish B2C segment, i.e. households and individual users. 
 
Based on expert interviews with market players and on a dedicated consumer survey, this report includes the most up-to-date, accurately verified and methodologically consistent data on the integrated telecommunications services market in Poland.
 

The report offers detailed answers to many questions concerning that market

  • What are the factors influencing the integrated services market in Poland?
  • Which bundled services are most popular among consumers?
  • What are the reasons for not using integrated services? 
  • What are the prices, offers and trends in each of the market segments? 
  • What are the prices and offers of different telecommunications operators?
  • What are the forecasts for the development of the integrated services market in Poland?
 

Integrated services represent a measurable benefit to customers 

A bundle offer (also referred to as a multi-play, integrated or convergent offer) combines at least two of the following services:
  • Voice services in fixed-line telephony (PSTN/VoIP)
  • Voice services in mobile telephony
  • Fixed-line internet access services 
  • Mobile internet access services (modem + PC) 
  • Television services.
The services making up a bundle are presented to customers as a single offer with a single price and a single bill. From the viewpoint of the customer, the key benefit is the lower price of the services comprising the bundle as compared to the same services sold separately.
 

Very good growth prospects for bundle services in the telco segment

Also from the viewpoint of enterprises multi-play services represent a beneficial business model:
  • They offer higher revenue per user 
  • They attach the customer to the service provider more strongly – which is especially vital on a market saturated with services, where reducing the customer churn has become one of the overarching business goals for companies
  • They are a universal model that may be applied by mobile and fixed-line telephony operators as well as by cable television networks and local ISPs; what is more, combining services into bundles goes beyond the telecommunications sector, opening up new business opportunities for companies, e.g. in the area of banking services, tourism, energy or gas sales.
The growth prospects of bundle services for the coming years are very good. The operators active on the Polish telecommunications market are aware of it and are already increasingly taking advantage of the possibility of bundling their services.
 

Comprehensive analysis of the bundle services market in the telco segment

This report contains a lot of detailed information on the market of integrated telecommunications services in Poland. It covers:
  • The current market situation 
  • Growth forecasts for the coming years
  • Key trends and tendencies on the market
  • The structure of the Polish market 
  • An analysis of the telecommunications operators' offers as regards multi-play services 
  • Different players' market shares
  • Popularity of using bundle services in the telco industry
  • Saturation of the Polish market with telecommunications services and prospects for further services development.
 

Up-to-date, verified and methodologically consistent market indicators 

The market data presented in this report has not only been thoroughly systematised with a view to ensuring its methodological consistency, but has also been – in order to ensure its reliability – verified through direct contacts with enterprises and customers. 
 
Examples of indicators and data contained in the report include:
  • Value of the integrated telecommunications services market in Poland
  • Value forecasts of the integrated services market in the coming years
  • Volume forecasts concerning further market growth
  • Number of subscribers to integrated telecoms services, total and broken down by specific bundle types
  • Estimated number of subscribers to bundle services and the number of RGUs sold in bundles by different operators 
  • Prices of bundles offered by telecommunications operators 
  • Average revenue per user for the operators
  • Value shares of different market players 
  • Volume shares of different operators. 
 

Data obtained directly from enterprises and consumers

It was possible to present in this report high-quality market data, analyses and forecasts thanks to the use of information obtained directly from the market: 
  • Meetings with companies – PMR experts conducted many personal interviews with staff employed by operators active on the market of integrated telecommunications services in Poland
  • B2C survey – consumers were asked e.g. about telecommunications services bought in bundles, the reasons for bundle purchases and their satisfaction with the offering.
 

When is it necessary to use this report?

Companies operating on the telecommunications market in Poland shall take advantage of this report and in this way expand their market shares and revenues:
  • When developing a strategy for the coming years, it is necessary to know market trends, growth forecasts and potential 
  • When preparing a budget or making financial decisions, hard data on bundle services must be taken into account 
  • When planning the use of you own customer base, it is worthwhile to find out what the competition is doing
  • When outlining the possibilities of cross-selling services to existing customers, it is advisable to find out what the preferences of bundle service users are
  • When preparing new offers, companies may take into consideration the market opportunities presented in this report, e.g. alliances and connections between telecommunications services and other services for the mass market. 
 

Who will gain most from the report?

We recommend the report to managers – including heads of business development, marketing and sales departments – of the following enterprises active on the telecommunications market in Poland or interested in entering the market:
  • Telecommunications operators, regardless of their specialisation and segment of activity
  • Cable television networks 
  • ISPs
  • Suppliers of telecommunications and network devices.
The use of bundle and integrated offers goes beyond the telecommunications sector and extends to banking services, tourism, energy, gas sales, etc. With that in mind, we also address this report to enterprises from outside the telco sector, such as:
  • Banks, insurers and energy companies
  • Polish and international financial institutions (banks, brokerage houses, investment funds)
  • Consulting, research and business intelligence companies
  • Chambers of commerce, professional organisations.
 

Market commentary by expert

For several years the Polish telecommunications market has been witnessing a trend of falling services prices accompanied by increasing service availability. The telecommunications services market is, in principle, saturated. However, it is experiencing an important change – the actions taken by the operators to reduce churn and to retain their customers. 
 
The strategies applied by the operators have one common denominator which is convergence and selling services in bundles. The logic behind such actions cannot be denied. The offers are now to include more services for a similar price and attach the customer to the supplier by means of bundles, thus increasing the frequency and intensity of using telecommunications services. The operators are no longer competing so strongly through prices but in return they offer to customers higher quality and faster connections, with most services being supplied in bundles. In this model the revenue per household is even higher but that is not necessarily the case for the average revenue per service.
 
In the coming years, principally all the bigger operators will continue to sell their services in bundles. Also supplementary services will help to retain customers and revenue. Mobile networks have already entered the segment of banking services on a larger scale. However, for the biggest telecommunications operators the key to success will be to develop their television offer based on their own infrastructure and thus to start competing with cable television networks for customers in bigger cities. The business model of the latter ones is based on offering service bundles and CaTV enterprises will continue applying this strategy, trying to increase the average number of services per user.
 
Pawel Olszynka, Head ICT Market Analyst 
 
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  • Methodology
  • Executive summary
  • Analysis of the market of bundled and integrated services
    • Market value and change
    • Current situation and trends
      • SWOT analysis
      • Market structure
    • Findings of PMR's B2C survey on bundled services
      • Survey methodology
      • Sample overview
      • Service saturation and trends
    • Bundled telecommunications services in Poland against the background of EU countries
    • Development forecasts for the market of integrated and bundled services
  • Operators' supplementary services, prices and discount policies
    • Prices of bundled services
      • Prices of multi-SIM bundles
    • Supplementary services and discounts
    • Financial services supplied by telecommunications operators
    • Electricity and gas sales
    • Supplement: Bundled and integrated services in the B2B segment
  • Profiles of the biggest players on the market of integrated and bundled telecommunications services
    • Cyfrowy Polsat Group (CPS Group)
    • UPC Polska
    • Orange Polska
    • Vectra
    • Netia
    • Multimedia Polska
    • Inea
    • Toya
    • nc+
    • T-Mobile Polska
    • P4

Graphs

  • Total number of RGUs in Poland, by types of services (million), 2010-2015
  • Average number of RGUs per subscriber to bundled services in Poland, 2010-2015
  • Number of RGUs sold in bundles in Poland, by types of services (million), 2010-2015
  • Number of subscribers (million) to bundled services in Poland and change (%), 2010-2015
  • Value of the market of telecommunications services in Poland, by types of services (PLN bn), 2010-2015
  • Value (PLN bn) and change (%) of the market of bundled services in Poland, 2010-2015
  • ARPU generated by the sales of bundled services in Poland (PLN), 2010-2015
  • Shares of top 10 operators in the market of telecommunications services sold in bundles (%), by number of subscribers in Poland, 2014
  • Respondent breakdown in Poland by gender (%), September 2015
  • Respondent breakdown in Poland by education (%), September 2015
  • Respondent breakdown in Poland by age (%), September 2015
  • Respondent breakdown in Poland by size of place of residence (%), September 2015
  • Respondent breakdown in Poland by net income per person (%), September 2015
  • Respondent breakdown in Poland by household size (%), September 2015
  • Respondent breakdown in Poland by home ownership (%), September 2015
  • Do you use in your household telecommunications services purchased in a bundle from one supplier (one company)? (%), September 2015
  • Do you use in your household telecommunications services purchased in a bundle from one supplier (one company)? Breakdown by place of residence (%), September 2015
  • Do you use in your household telecommunications services purchased in a bundle from one supplier (one company)? Breakdown by type of residence (%), September 2015
  • Do you use in your household telecommunications services purchased in a bundle from one supplier (one company)? Breakdown by number of persons in a household (%), September 2015
  • Do you use in your household telecommunications services purchased in a bundle from one supplier (one company)? Breakdown by monthly net income per person (%), September 2015
  • Number of services included in the purchased bundle of telecommunications services in Poland (%), September 2015
  • Services included in the purchased bundle of telecommunications services in Poland (%), September 2015
  • Most popular bundles of telecommunications services purchased in Poland (%), September 2015
  • What is the key reason for using services in a bundle? (%), September 2015
  • What is the name of your supplier of bundled telecommunications services? (%), September 2015
  • Average bills paid by users of bundled services in Poland (%), September 2015
  • Key reasons for not using bundled services in Poland (%), September 2015
  • Do you plan to purchase telecommunications services in a bundle from a single supplier in the next 12 months? (%), September 2015
  • Shares of households in the European Union reporting the use of two, three and four telecommunications services provided by a single supplier (%), 2007-2014
  • Transparency of prices of telecommunications service bundles in the European Union, Poland, the Czech Republic, Romania and Hungary (%), 2014
  • Shares of customers in the European Union, Poland, the Czech Republic, Romania and Hungary comparing the offers of bundled telecommunications services on a regular basis (%), 2013-2014
  • Shares of subscribers to bundles of telecommunications services in the European Union, Poland, the Czech Republic, Romania and Hungary regularly informed by their operator of changes in the offer (%), 2014
  • Shares of households in the European Union and in Poland reporting that they have changed suppliers of different telecommunications services and bundles (%), 2014
  • Shares of households contemplating change of their supplier of bundled services in the European Union (%), 2014
  • Shares of households contemplating change of their supplier of bundled services in Poland (%), 2014
  • Factors impacting selection of internet services offers by households in Poland and the European Union (%), 2014
  • Discounts for bundled telecommunications services offered by selected European operators (%), 2014
  • Penetration of integrated services among subscribers to broadband internet services offered by biggest operators in Spain, Switzerland, France, Portugal, Denmark, Belgium and the Netherlands (%), 2014
  • Number of subscribers to bundled services, broadband internet access and pay television supplied by Telefonica in Spain ('000), 2013-Q3 2015
  • Number of subscribers to bundled services, broadband internet access and pay television supplied by Orange in France ('000), 2011-Q3 2015
  • Total number of RGUs in Poland (million), by types of services, 2015-2020
  • Number of RGUs sold in bundles in Poland (million), by types of services, 2015-2020
  • Number of bundled services per subscriber in Poland, 2015-2020
  • Number of subscribers (million) to bundled services in Poland and change (%), 2015-2020
  • Value (PLN bn) and change (%) of the market of bundled services in Poland, 2015-2020
  • Average price of bundles including two, three and four basic telecommunications services in Poland (PLN), November 2015
  • Average price of one basic telecommunications service when purchasing two, three or four services in a bundle in Poland (PLN), November 2015
  • Number of new customers of T-Mobile Uslugi Bankowe in Poland, Q2 2014-Q3 2015
  • Number of active customers of T-Mobile Uslugi Bankowe and Orange Finanse in Poland ('000), Q4 2014-Q3 2015
  • Shares of different players in the market of banking services offered by telecommunications operators in Poland, by number of active customers ('000, %), Q3 2015
  • Number of users of electrical energy and gas offered by Magyar Telekom, 2011-Q3 2015
  • Revenue of Magyar Telekom generated by energy sales (€ m), 2011-2015
  • Number of customers using electricity and gas supplied by Utility Warehouse, 2005-H1 2016
  • Penetration of telecommunications services sold in a bundle in the B2B segment in Poland, by enterprise size (%), 2014
  • Share of large enterprises in Poland using telecommunications services offered in bundles (%), Q1 2015
  • Shares of services purchased in a bundle by large enterprises in Poland, (%) Q1 2015
  • Factors preventing large enterprises in Poland from purchasing telecommunications services in a bundle (%), Q1 2015
  • Plans for future purchase of telecommunications services in a bundle in the segment of large enterprises in Poland (%), Q1 2015
  • Number of subscribers to selected multi-play services of Orange in Poland ('000), 2012-Q3 2015
  • Discounts offered by Orange for Orange Open (PLN), by number of selected services, 2015
  • Number of Orange Open RGUs ('000), Q4 2013-Q3 2015
  • Number of Orange Open services per customer, Q4 2013-Q3 2015
  • Number of subscribers of nc+ in Poland (million), Q1 2014-Q2 2015
  • Number of bundles of nc+ sold by Orange Polska in Poland ('000), Q1 2014-Q3 2015

Tables

  • Integrated services market in Poland – SWOT analysis, 2015
  • How likely are you to recommend your supplier of bundled services to family or friends? (%), September 2015
  • Do you intend to extend the present agreement with your supplier of bundled services? (%), September 2015
  • Shares of households subscribing to telecommunications services in bundles in selected European countries (%), 2006-2014
  • Households in the European Union and in Poland using at least one bundle of telecommunications services (%), 2014
  • Telecommunications services purchased in bundles in the European Union, Poland, the Czech Republic, Romania and Hungary (%), 2013-2014
  • Reasons for staying with the present supplier of bundled services despite contemplating change in Poland and in the European Union (%), 2014
  • Comparison of prices of telecommunications services when purchased in bundles and separately from selected operators (€), 2015
  • Churn rate for subscribers to one, two, three and four telecommunications services offered by Belgacom (%), 2013-Q3 2015
  • Operational KPIs for Liberty Global, H1 2015
  • Multi-SIM services – comparison of prices offered by the biggest mobile networks in Poland, November 2015
  • Selected functions available in the offers of T-Mobile Uslugi Bankowe, Plus Bank and Orange Finanse in the area of mobile and online banking in Poland, Q3 2015
  • Standard electricity rates in the offers of selected telecommunications operators in Poland, by tariffs, Q4 2015
  • Standard electricity rates offered by Multimedia Polska, depending on the selected tariff in Poland, 2015
  • Cooperation between telecommunications and energy companies in Poland, Q4 2015
  • Importance of price and convenience for large enterprises when selecting telecommunications services from a single supplier in Poland, Q1 2015
  • Number of RGUs of CPS Group and subscribers to its post-paid services and average number of RGUs and ARPU per subscriber in Poland, Q1 2014-Q3 2015
  • Number of RGUs and subscribers to smartDOM multi-play services (million) and average number of services per subscriber, Q3 2014-Q3 2015
  • Standard electricity rates offered by Plus in Poland, depending on selected tariff, 2015
  • Number of subscribers and RGUs of UPC Polska by service type and average number of services per subscriber ('000), 2011-Q3 2015
  • UPC – comparison of content and prices of selected bundles of telecommunications services in Poland, Q4 2015
  • Orange – comparison of content and prices of selected bundles of telecommunications services in Poland, Q4 2015
  • Standard electricity rates offered by Orange in Poland, depending on selected tariff, Q3 2015
  • Vectra – comparison of content and prices of selected bundles of telecommunications services in Poland, Q4 2015
  • Number of subscribers and RGUs of Netia and its ARPU in Poland, by types of services, Q1 2014-Q3 2015
  • Netia – comparison of content and prices of selected bundles of telecommunications services in Poland, Q4 2015
  • Number of subscribers of Multimedia Polska by number of its services in Poland ('000), Q1 2014-Q3 2015
  • Multimedia Polska ARPU per subscriber and RGU (PLN), Q1 2014-Q3 2015
  • Multimedia – comparison of content and prices of selected bundles of telecommunications services in Poland, Q4 2015
  • Standard electricity rates offered by Multimedia Polska, depending on selected tariff in Poland, Q3 2015
  • Inea – comparison of content and prices of selected bundles of telecommunications services in Poland, Q4 2015
  • Toya – comparison of content and prices of selected bundles of telecommunications services in Poland, Q4 2015
  • nc+ – comparison of content and prices of selected bundles of telecommunications services in Poland, Q4 2015
  • Different JUMP! Family tariff plans offered by T-Mobile in Poland, Q4 2015