SmartDOM is a unique savings program for homes which offers a wide array of products and services, thus enabling our customers to create a comfortable, safe and modern home. The program is based on a simple and flexible mechanism – a customer subscribed to one service with a specified value who purchases additional products of our Group, obtains attractive discounts throughout the entire term of the contract. This way every customer has the possibility to create a set of services for the family consisting of satellite TV, access to LTE Internet and telephony services .
At present smartDOM program offers as many as 9 products and services for homes which customers can combine together, and hence obtain savings on their household bills.- Apart from our basic, core products and services, i.e. mobile telephony, Plus and Plus Advanced LTE Internet and satellite TV from Cyfrowy Polsat, smartDOM customers can also use services such as the electricity supply in the Electricity from Plus offer, banking services offered by PlusBank, comprehensive insurance services offered in cooperation with ERGO Hestia and home security services, such as monitoring, and also supply of natural gas. Moreover, the offer also comprises telecommunication devices, home electronics and household appliances.
- All of the offered products and services are important for households. Thanks to the unique formula of the smartDOM program, the customer can purchase all the products and services that households need from one place and generate savings on each additional service bought..
- In October 2014 we launched a corresponding program addressed to business customers from the SOHO segment. The program is called smartFIRMA (smartCOMPANY).
Multi-play services market
Multi-play services in Poland are provided primarily by cable TV operators and telecommunication service providers. According to PMR, as at the end of 2015 nearly half of the bundled services market was held by four largest players – Orange, Polsat Group, T-Mobile and UPC. With respect to the number of subscribers the share of Polsat Group on the bundled services market in Poland in 2015 was 15.4%. Other important players on the market included the mobile operator P4 and cable operators Vectra, Multimedia Polska and Netia. Neither of the remaining operators offering bundled services had market shares exceeding 2%..
The multi-play market has been consistently growing since 2010 in terms of value. According to PMR estimations, in 2016 operators’ revenue from sales of bundled services grew at a rate of 12.4% YoY, reaching PLN 10.2 billion. ARPU is characterized by a similar trend – PMR estimates that the average revenue per customer from sale of multi-play packages will increase to PLN 86.6 in 2016, from PLN 84.1 in 2015.
According to the European Commission’s report “E-Communications and Digital Single Market,” published in May 2016, in October 2015 the penetration rate of multi-play services (defined as more than one service within the offer of one operator) was 37% in Poland, while in the European Union average penetration reached 50%, and in the Netherlands and Malta it amounted to 87% and 78%, respectively. The figures can be underestated, however, because of the methodology applied in the survey. According to PMR, in the fourth quarter of 2016, 62% of households in Poland declared that they use at least two telecommunication services provided by the same supplier and multi-play packages.
Research by PMR demonstrates that a bundle combining two services remains the most popular option. In the fourth quarter of 2016, 57% of Poles chose this option. At that time 35% of Poles used triple-play services (a bundle comprised of three services), while only 7% of customers decided to purchase a bundle containing four services. As for the structure of the bundles, fixed-line Internet access services and pay TV dominate, followed by fixed-line and mobile telephony. Mobile Internet access is a component of only a third of purchased bundles.
Market forecasts
According to PMR forecasts, the bundled services market will consistently grow in subsequent years, both in terms of the number of subscribers and value. The expected average annual compound growth rate in the years 2016-2021 will be 7.4%.. In 2021 the number of subscribers using bundled services will exceed 12.7 million. The number of services sold in bundles will come close to 33.5 million.
In subsequent years, the development of the Polish market of bundled services will be influenced not only by the low level of saturation of this market with services, but also by the systematic roll out of the infrastructure and improving quality of network access, throughput in particular. Operators’ strategies, based on combining telecommunication and media services with the services offered by sectors other than-telecommunications are also an important factor. The bundled services offers of leading operators on the Polish market comprise, among others, sale of electricity and gas, as well as banking, financial and insurance products. Consolidation trends, observed on the media and telecommunications market, may also affect the development of the bundled services market.