Repremiumization: The dangerous self-deception at work in European Telcos
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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 pages Charts: 04 Author: Chris Barraclough Publication 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
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