A new report from analyst firm Analysis Mason has identified a number of new opportunities for service providers to add incremental revenue to basic service packages in the “digital home”.
The research lists a number of segments and also highlights indicative market pricing, based on the retail strategies of different service providers.
- Online security
- Online storage
- Technical support
- Home monitoring and security
- Energy management
As service providers search for ways to add value to their basic service offers, these optional extras to connectivity packages illustrate significant revenue potential, even without significant service innovation.
The “multi-room” category is an interesting case, as it suggests that the addition of multiple devices to an existing service offer may also become a significant phenomenon. But all of the bundles point to increasing complexity and will demand new ways to efficiently allocate bandwidth and prioritise traffic from different services. For example, online storage procedures may not be a priority service and should be dynamic, accelerating upload when bandwidth is available and throttling back when it is required by other applications.
Subscribers with multiple devices may find themselves competing with each other for the available bandwidth, or may wish to obtain faster upload and download rates, depending on what they are doing.
To be truly successful, the connected home looks like it will add another layer of complexity into the mix for service providers. There’s an implicit flexibility and dynamism here that needs to be addressed.
If the model of offering service add-ons is to be successful, service providers will need to deploy a means to achieve this dynamic framework, directly to the digital home.