**Nicole McCormick**, Senior Principal Analyst, Broadband and Bundling
The aim of the report was to revisit the last 18 months’ impact of COVID-19 on the fixed broadband bundle. Consumer behavior has changed dramatically in this period with more people working and learning from home, and we expect this trend to prevail. But this has come with increasing demand on broadband service providers, particularly in terms of reliability.
Using consumer surveys around bundling attitudes and wider research, such as Omdia’s consumer broadband subscriptions forecast, we concluded that COVID-19 has had little or no impact on the bundle for several main reasons.
First, many operators have proactively stepped up bundling innovation, including introducing a wider range of services and more “build your own” bundled options, increasing consumer choice and flexibility. Second, there was little reported evidence from telcos of consumers churning from the bundle. In other words, we believe consumers went direct (for example, to Netflix) to get new services they wanted rather than cut bundles completely.
Third, we believe that online video services are now an intrinsic part of the modern bundle. Service providers have accepted this, and many are offering online video services as part of their bundles and integrating the apps on their platforms.
Next-gen bundles are forecast to make up 65% of all bundled subscriptions in 2026 compared with 55% in 2021. Bundles include those with online video subscription services or a mobile cellular plan bundled with gigabit broadband.
Traditional v next-gen bunndled subscriptions 2021-26
Legacy bundles include dual play (broadband and voice), triple play (add pay TV), and quad play (add mobile). Dual play is forecast to contribute less than 8% of legacy bundled subscriptions by 2026, while triple-play subs will fall to 152 million from 188 million in 2021 as consumers turn to new and fast broadband, 5G, online video, and value-added service bundles. Thanks to their mobile component, quad-play subscriptions are expected to grow from 86 million in 2021 to 137 million in 2026.
Meanwhile, next-gen bundles (the rest of bundled subscriptions) are tipped to grow from 485 million in 2021 to 686 million in 2026. In contrast, legacy bundles will fall slightly from 399 million to 365 million.
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Nicole McCormick, Senior Principal Analyst– Broadband and Bundling Thursday 2 June 2022 | 18:00-18:20