Mobile Operators Strategize to Overcome Challenges in Fixed Market Expansion

Entering the fixed broadband market poses significant challenges for many mobile operators, with organic customer acquisition proving to be an uphill battle, reveals insights from Analysys Mason’s latest report.
Telstra broadbandAnalysys Mason report on fixed telecom services has revealed the market share of fixed connections since the launch of fixed services.

Reliance Jio Infocomm (India) 25.0%
AIS (Thailand) 8.0%
2degrees (New Zealand) 5.2%
Orange (Romania) 4.8%
DIGI (Spain) 4.3%
Salt (Switzerland) 4.3%
T-Mobile (USA) 2.4%
Vodafone (UK) 1.9%
Malaysia (Maxis) 1.8%
T-Mobile (Poland) 1.1%


Analysys Mason Senior Analyst Stefano Porto Bonacci said.

Key Challenges and Strategies

High Fixed Broadband Penetration: With fixed broadband penetration already high in most countries, new entrants must entice competitors’ fixed customers to switch providers, a task complicated by low churn rates among fixed customers.

Differentiation Beyond Price and Speed: The conventional strategy of competing on low tariffs and high speeds is easily replicated by competitors, prompting mobile operators to explore alternative differentiators.

Limited Organic Growth: Despite efforts, only a handful of mobile operators, including 2degrees in New Zealand, AIS in Thailand, and Jio in India, have managed to secure a market share exceeding 5% four years after launching fixed services.

Innovative Differentiation Strategies To break through these challenges, mobile operators are adopting innovative strategies to attract fixed customers:

Enhanced Customer Incentives: Operators like Salt in Switzerland offer cash bonuses to new fixed customers, while others, like T-Mobile in the USA, provide incentives to cover early termination fees, making it financially appealing for customers to switch.

Seamless Switching Processes: Operators streamline the transition for customers by handling service cancellations with previous providers and activating new services seamlessly, as seen with Odido in the Netherlands.

Mobile Connectivity Integration: Mobile operators leverage their existing mobile services to enhance fixed offerings, offering perks such as larger mobile data allowances and faster download speeds to customers who opt for fixed services. Additionally, integrating 4G and 5G backup services into fixed tariffs enhances reliability, addressing a key concern for customers.

Future Outlook By combining fixed connectivity with elements from their mobile services, mobile operators aim to bolster their offerings and gain a competitive edge in the fixed broadband market. These innovative strategies not only improve customer acquisition prospects but also pave the way for sustained growth and differentiation in an increasingly crowded market landscape.