Convergence

Consolidating households’ telecom and media spending

We define ‘convergence’ as delivering a package of both mobile and fixed services, which fulfils the needs of an average household.

In our view there is a significant potential for convergence in Poland as the vast majority of households still pay their media and telecom bills to different operators. Consolidation of these bills comes with both convenience and a financial benefit. In line with our value-focused approach, we made convergence our flagship product for Polish households. At the same time we limited advertising of our mobile-only or fixed-only offers.

Convergence gives us the following key benefits:

It constitutes our competitive edge, a key market differentiator. On one hand, cable operators do not offer mobile services on any meaningful scale. On the other hand, our mobile competitors historically did not invest significantly in fixed access networks. That is now changing, with the acquisition of Netia by Cyfrowy Polsat and T-Mobile gaining access to our fibre network. However, our footprint to offer convergence on a fibre network is by far the largest in the market, and we believe Orange Love, as the only hard bundle offer, is a unique value proposition for Polish consumers.
It is a good customer loyalty tool. Convergent customers tend to churn a lot less than non-convergent customers.
It allows us to upsell more services, winning a higher share of household media and telecom budgets.

Orange Love – a winning convergent offer on the market
TV content – an important success factor

Our Orange Love convergent offer continued to be our flagship proposal for Polish households in 2020.

The total number of B2C convergent customers increased 8% last year to 1.48 million. The Orange Love offer is a predefined set of fixed and mobile services, bundled together and sold at an attractive fixed price. The basic package can be extended with extra fees for additional SIM cards, higher fibre-broadband speed and additional TV content. On top of that we offer a wide range of smartphones at attractive prices. Importantly, Orange Love is available on any broadband technology (fibre and copper), and also on LTE positioned as home broadband. This allows us to market this offer all over the country, which is very efficient. In March 2019 we refreshed the Orange Love offer. We designed two new packages called Extra and Premium to make the choice easier for customers looking for richer TV content.

An important factor in the success of our convergent strategy is the quality of TV content, which is very important for Polish consumers when choosing a service provider.

In 2016 we changed the way we source our TV content, both on IPTV and satellite technology. It allowed us to be more flexible in the way we shape our offer and price it. In 2017 we became the first operator in Poland to launch a decoder that allows customers to watch 4K Ultra HD TV. Our TV offer is now fully competitive versus cable operators, allowing us to successfully build Orange’s reputation as a reliable content provider. We intend to remain a content reseller: our strategy does not foresee any investments in exclusive content. Our total TV customer base in 2020 increased by more than 2% and exceeded one million. That growth consists of robust growth of IPTV technology (14% in 2020), which is driven by expansion of our fibre footprint and a decline in customer base of satellite TV. More than 85% of TV customers were convergent customers.

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