In baseball, a triple play occurs when the fielding team gets three players from the batting team out during a single play. It is a rare feat of teamwork, requiring exceptionally quick thinking and superb coordination. The same might be said of fixed line operators' quest to bring the triple play of voice, data and video services into consumers' homes, as success in this arena will require some speedy, decisive moves. And the wireline incumbents are ready to play ball.

The triple play phenomenon is good news for the wireline incumbents, who have been facing tough competition of late from mobile operators, cable companies and younger fixed-line operators. With their low prices and snappy marketing campaigns, these newcomers have been steadily chipping away at the wireline incumbents' main revenue-generating markets: voice and DSL.

Now the wireline incumbents have a chance to get back into the game, by leveraging their switched infrastructure and complementing their offerings with video; the key to success in the triple-play arena. Today it is largely true to say that wireline incumbents' voice and data traffic generates revenue, but not profit. Video, on the other hand, will be extremely profitable, with research showing it to be the single most important component of churn-reducing service bundles.

But it is not only the wireline incumbents that have recognized the triple-play opportunity, and other players are also looking for ways to capitalize on the IP-driven market. Cable companies in particular are likely to prove tough competition in the triple-play arena. With the home ground advantage of video experience, the cable companies have to a large extent found it easier to move toward the triple play than fixed-line operators. Cable companies first enhanced their TV offerings with internet services through cable modems, and they are now also starting to offer voice services over the IP protocol (VoIP).

However, fixed-line operators have a number of advantages over the cable companies, many of which will become more evident as video services evolve from broadcast to personal. This evolution will enable wireline incumbents to leverage the capabilities of their switched-IP infrastructure, as personal broadcasting works better over a switched model of video delivery than it does over cable. Personal broadcasting will also allow wireline incumbents to employ their knowledge of micro-billing and network management.

Dutch incumbent KPN has been quick off the mark to exploit this potential, signing an agreement with broadcaster Digitenne for a digital video service as part of a new triple-play offering. The 25 channels will initially be available to about 2.7 million households in Amsterdam, Utrecht, The Hague and Rotterdam, with coverage to be nationwide by the end of 2006. This new offering is in part a reaction by KPN to a drop in its share of fixed-line voice revenue. The company lost about 5 percent in each of the local, national and international fixed-line voice markets in the year to June, while fixed-line sales fell by 4 percent year-on-year in the second quarter of 2004.

Elsewhere in Europe there are more triple-play moves afoot. In Switzerland, wireline incumbent Swisscom has acquired a 49 percent stake in Cinetrade: a local company active in pay-TV services, cinemas and DVD film rights. The move will give Swisscom access to the expertise, distribution channels and content it needs to stay ahead of the triple-play game. Such acquisitions or partnerships are likely to become more common as fixed-line operators look to get their hands on compelling video content.

Regardless of how wireline incumbents decide to move, the triple-play presents a golden opportunity for them to boost falling revenues. And, as many of them are closely aligned with a mobile operator, they are also well-positioned for the next step of IP-service evolution: mobile broadband. Making voice, video and data services available to consumers while they're on the move will give wireline incumbents yet another chance to claw back market share. But that will be a whole new ball game.