GfK expects broadband business model to change to ‘pay as you use’

Market analyst GfK says that the sale of broadband will change to a ‘pay as you use’ model over the coming years.

Supply chain director told PCR: "Broadband should be a utility and the conduit to a plethora of services which excite, create efficiency and develop opportunity.

"Collaboration, peer-to-peer, managed services and growth in unified communications are trends to watch. As cloud and the Internet of Things (IoT) matures, and as we understand more about the growing interest in decentralised services such as Blockchain, we will see the business model change over time to ‘pay as you use’ – resellers will switch a customer on and then bill based on packaged services and bandwidth used.

"Ultimately, Big Data, Cloud, Unified Comms and the associated analytics are great vehicles to engage with the customers rather than posturing a hypothetical need for speed.”

West also pointed out that the addressable broadband market in the UK is vast and heavily indexed in legacy infrastructure, thus the change from landline to 100 per cent wireless is a scenario that’s ‘many years away’.

He also spoke about growth in specific areas which are changing how IT dealers generate business.

“When looking at reseller system administration, there has been growth in VPN, VOIP, remote hosting and, of course, Cloud, which continues to change the game,” he said.

“Services such as CRM, finance and billing, ERP and network management reduce the demands for on premise, as well as the traditional need for fixed IP. VOIP, teleconferencing, digital PBX, messenger services and social media means that the always connected customer needs greater speeds and bandwidth.

"There has also been an increase in MSPs (Managed Service Providers) since the recession. This is due to resellers changing from break fix to managed services and the number of new resellers that are cloud-focused, but need their client base always connected.”

Last week Virgin Media Business spoke at PCR Boot Camp 2016 about the opportunity for IT resellers to sell broadband.

Read more about the broadband market in the next issue of PCR

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