Bundles Lift Revenue per Customer, Drive Revenue Growth, Reduce Churn, Even in Tough Markets

Portugal Telecom provides instructive guidance on the importance for fixed network service providers of triple play packages and video services, even in markets with negative growth of voice services and tough economic conditions a a backdrop.

In the second quarter of 2013, overall revenue fell 5.5 percent. But in Portugal, broadband access revenues grew 8.5 percent. Video entertainment revenues grew 9.8 percent. Uptake of triple-play bundles grew 16.7 percent and fiber to home revenues grew 25 percent.

Without those revenue contributions, results would have been far worse. Also, bundles reduce customer churn and raise average revenue per unit because consumers are buying more than one product.