Can Premium Mobile Benefits Strengthen Bundling and Revenue?

Can the same benefits that make consumers more interested in bundling also create incremental revenue for providers?

Research from the “Assurant Bundling and Convergence Study” points to an intriguing possibility. When complete mobile device protection and an upgrade every two years were added to a hypothetical home internet and mobile bundle, 76% of consumers said the offer was more or much more attractive. Nearly half (49%) said it was much more attractive. Complete protection was defined in the study as replacement if a phone was lost, stolen, or accidentally damaged, or stopped working.

For carriers and MSOs, the finding raises a bigger question. If premium mobile benefits can make convergence more appealing, can they also create value consumers are willing to pay for?

Benefits can give consumers another reason to bundle.

The research suggests yes. Protection and upgrades didn't simply add more features to the hypothetical bundle. They changed how consumers evaluated the offer.

Consider what that could mean depending on where the customer relationship starts.

A mobile customer that’s considering home internet from their carrier already knows the provider through their phone and service. Protection and upgrade benefits extend that familiar mobile experience into the broader proposition, giving the customer something additional to consider alongside connectivity.

For an MSO's broadband customer, the decision runs in the opposite direction. Adding mobile means entrusting another part of their connectivity to the same provider. Benefits tied to the device can give that mobile offer more substance than simply putting another service on the account.

During Assurant's telecom convergence webinar, Giovanni De Choudens, Group Vice President of Mobile Products at Spectrum, offered another perspective on how these benefits contribute to the broader convergence experience.

“I think about mobile benefits as a bridge rather than a standalone perk. The mobile relationship ends up reinforcing everything else in the bundle, not just sitting next to it as another line item.” — Giovanni De Choudens, Group Vice President of Mobile Products, Spectrum

But adding more benefits isn’t enough to make the bundle more valuable. Consumers have to be able to connect those benefits to their own needs and experiences.

More benefits don't automatically mean more value.

Imagine a cracked phone screen on the morning of an important trip. Or an aging device that's becoming unreliable just as the consumer starts thinking about replacing it.

Those are situations where the value of protection or an upgrade path is easy to understand. The benefit connects directly to a problem the consumer can picture.

That's different from adding an unrelated perk simply to make the list of bundle features longer. Protection addresses the disruption and potential expense of an unexpected device problem, and an upgrade program can make it easier for consumers to access the latest technology without facing the full cost of a new device all at once.

The distinction matters because premium value isn't created by the number of benefits in an offer. It comes from how relevant those benefits are to the experience consumers are already paying for.

And relevance becomes even more meaningful if consumers are willing to put a price on it.

Consumers indicate they're willing to pay for premium value.

When Assurant asked consumers about a home internet and mobile bundle that included both protection and upgrade benefits, nearly 80% indicated they would pay more for the combined offer. Nearly half said they would pay at least $6 more per month.

Assurant also evaluated how consumer demand changed at different monthly prices for protection and upgrade benefits. That analysis identified $10 per month as the revenue-maximizing price point for both. The $10 finding shouldn't be interpreted as the right price for every program. Customer segments, benefit design, and the broader offer will all influence pricing decisions.

These findings indicate that consumers assign monetary value to premium mobile benefits, making them an important consideration in the economics of convergence, not just the appeal of the offer.

Build premium value into the convergence strategy.

For carriers and MSOs, the findings suggest that a stronger convergence strategy starts with more than the connectivity services themselves. The goal isn't simply to combine home internet and mobile under one offer, but to consider how the benefits surrounding those services can make the overall relationship more valuable to consumers.

Protection and upgrade programs demonstrate what's possible when premium benefits are relevant to the customer experience. They can give consumers another reason to bring their connectivity together while creating additional revenue potential for providers.

Which consumers are most open to convergence, and what else shapes their decision? Explore the “Telecom convergence: What drives consumer adoption” ebook for more findings from the “Assurant Bundling and Convergence Study” on the barriers, triggers, and behaviors influencing telecom bundling.