Operators need to discover new ways to make energy–telecoms bundles a success
Telecoms operators have started to express a renewed interest in the utility segment. They hope to generate a new source of revenue (beyond connectivity) and to increase their share of wallet among existing customers. However, they are unlikely to generate large direct profits by selling energy plans. They either need to explore innovative models or focus on how energy products can help their core business.
Telecoms operators find it difficult to offer better deals than energy suppliers because margins on energy services are low. As such, it has proven to be challenging for operators to upsell utility services to their customers; KDDI (in Japan) is one the few exceptions to this trend.
Churn reduction among a small share of existing telecoms customers is likely to be the main benefit of promoting telecoms bundles with energy services.
Author

Stefano Porto Bonacci
Principal AnalystRelated items
Forecast report
Ireland: fixed–mobile convergence forecast 2024–2029
Article
Fixed–mobile bundles: benefits such as higher fixed speeds can be as powerful as monetary discounts
Article
SK Telecom is investing heavily to back its goal of generating USD7 billion in AI revenue by 2030