Bulgarian operator Vivacom is promoting its “Duo: Net + TV” plan by offering subscribers 28 percent off the monthly fee for the duration of their contract. The offer is good through the end of February for new as well as existing customers who wish to make the switch. Sales of the package, which combines 40 TV channels with high-speed internet, and comes with a Wi-Fi router, have doubled over the past six months.
This promotion shows how a fixed line operator can move down the path of re-engineering its business from being simply a pipeline for phone calls to becoming an information and entertainment distributor, and ISP. As we have been saying for some time, fixed line companies should focus a preponderance of their attention and capital on becoming content and Internet access providers. However, to do so, they must roll out fiber to the home, because such a transformation cannot be accomplished without an end-to-end high throughput network. The prevailing wisdom may have it that fixed line is a business model in permanent decline, but for those operators with an advanced network and a little bit of vision, nothing could be further from the truth.