Repremiumization: The dangerous self-deception at work in European Telcos

£1,000.00 excl VAT

As several operators in Europe downsize their Telco 2.0 Digital Services activity, some are seeking to reframe the Piper strategy as a premium-priced differentiation play based on network quality. This report argues this is deluded and dangerous – a Piper strategy is viable but only by developing cost-leadership in a commodity market.


Format: PDF filePages: 13 pagesCharts: 04Author: Chris BarracloughPublication Date: June 2015

Table of Contents

  • What is ‘Repremiumization’?
  • Promoted as a viable strategy recently at STL Partners’ Senior Executive Strategy Seminar in London…
  • …and put forward by a leading strategy house
  • Why is repremiumization 100% hogwash?
  • The argument simply does not stand up to scrutiny
  • Better networks are a source of advantage for operators by enabling cost leadership
  • Lessons from the steel industry: Network quality is unlikely to provide sustainable differentiation
  • Conclusions

Table of Figures

  • Figure 1: Where should the European telecoms industry place its bets for future success?
  • Figure 2: ARPU levels of 7 customer segments with and without better network services and digital ‘life experience’ offers
  • Figure 3: Sky UK winning market share and growing margins against the three bigger players
  • Figure 4: The importance of cost reduction in disrupted industries – The US Steel Industry

Technologies and industry terms referenced include: Authentication, Business Model, digital services, nfv, Piper, Repremiumization, SDN, Self-deception, Strategy, telcos